Warner Bros Discovery to Reject $108 Billion Paramount Hostile Bid

Warner Bros Discovery Inc. is preparing to recommend that shareholders reject a $108 billion hostile takeover offer from Paramount, according to multiple reports, signaling the company’s preference to proceed with its existing strategic agreement with Netflix.

The Paramount proposal, announced earlier this month, is an all-cash offer made directly to shareholders, bypassing Warner Bros Discovery’s board. If completed, the transaction would rank among the largest media mergers ever proposed, potentially reshaping ownership across major film, television, and streaming assets.

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Details of the Paramount Offer

Paramount’s bid values Warner Bros Discovery at approximately $30 per share, representing a premium to the company’s recent trading levels at the time of the announcement. The offer was launched as a hostile tender, meaning it was not solicited or endorsed by Warner Bros Discovery’s management.

Paramount stated that the bid was fully financed through a combination of equity and debt commitments. However, subsequent disclosures indicated that Affinity Partners, the investment firm led by Jared Kushner, withdrew from its role in supporting the transaction, raising questions about the bid’s final financing structure.

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Board Concerns and Financing Uncertainty

Sources familiar with the matter said Warner Bros Discovery’s board has expressed concerns related to financing certainty, execution risk, and regulatory review, factors that are central to large-scale media consolidation deals.

While the Paramount offer carries a higher headline valuation, Warner Bros Discovery is reported to view the proposal as involving greater uncertainty compared with its existing agreement with Netflix. That agreement, announced earlier, remains the company’s preferred path forward at this stage.

Warner Bros Discovery has not publicly disclosed full details of the Netflix transaction but has indicated that it aligns more closely with the company’s current strategic and financial objectives.

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Strategic Context

The bid comes at a time when major media companies are reassessing their business models amid ongoing shifts in consumer viewing habits, advertising markets, and global streaming competition. Warner Bros Discovery has been focused on debt reduction, operational restructuring, and portfolio optimization following its merger in 2022.

Paramount’s approach reflects a broader trend of consolidation efforts within the entertainment sector, as companies seek scale and diversified content libraries to remain competitive.

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Next Steps

Warner Bros Discovery is expected to formally communicate its recommendation to shareholders in the coming days. Paramount’s tender offer remains open unless withdrawn or amended, and the company could choose to revise its proposal.

Shareholders will ultimately decide whether to accept the Paramount offer, though the board’s recommendation is likely to carry significant weight.

The situation continues to be closely monitored by investors and regulators, as its outcome may have lasting implications for the global media and entertainment industry.

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