Warner Bros set to reject Paramount’s $108.4 billion takeover bid, back Netflix in bidding war: Report

Warner Bros. Discovery’s board could announce a decision as early as Wednesday on Paramount’s $108.4 billion takeover bid, with the board likely to advise shareholders to vote against the offer, according to sources familiar with the matter.

WB recommits to Netflix

The decision to recommit to Netflix’s buyout offer would mark the latest twist in the race for assets that include Warner Bros’ storied film and TV studio, and its extensive film and television library, whose portfolio includes classics ranging from Casablanca and Citizen Kane to contemporary favorites like Harry Potter and Friends, HBO and the HBO Max streaming service. A Warner Bros Discovery spokesman declined to comment.

The winner will gain a big advantage in the streaming wars by locking up a deep content library that has long been an acquisition target.

Netflix earlier this month emerged victorious with a $72 billion cash-and-stock bid for Warner Bros’ non-cable assets.

What is Paramount’s bid

Paramount CEO David Ellison then went directly to Warner Bros’ shareholders with a $30-a-share, all-cash bid for the whole company. In regulatory filings, Paramount has said its bid is superior to Netflix’s offer and would enjoy a clearer path to regulatory approval. Its offer is financed by $41 billion in new equity, which is backed by the Ellison family and RedBird Capital, and $54 billion of debt commitments from Bank of America, Citi and Apollo.

Jared Kushner’s Affinity Partners, which was one of Paramount’s financing partners, is exiting the battle, according to Bloomberg.

Paramount and Affinity Partners did not immediately respond to Reuters’ request for comment.