Warner Bros Discovery tells investors to reject 'inadequate' $108bn Paramount bid

Warner Bros Discovery Rejects Paramount Skydance's $108 Billion Hostile Bid Amid Corporate Battle

In a move seen as a significant setback for Paramount Skydance, Warner Bros Discovery (WBD) has urged its shareholders to reject the billionaire-led conglomerate's "inadequate" $108.4 billion hostile takeover bid.

The rejection comes amid an extraordinary corporate battle over WBD, with Paramount trying to combat criticism of its offer by claiming it had a "full backstop" – a safety net to ensure sufficient funds – from the Ellison family, led by co-founder Larry Ellison. The billionaire's personal guarantee worth more than $40 billion was touted as a way to address WBD's concerns about financial flexibility.

However, WBD's board has deemed the bid "inadequate", citing significant risks and costs associated with it. In a letter to shareholders, they stated that the revised offer remains insufficient, particularly given its limited value, uncertainty around Paramount Skydance's ability to complete the deal, and potential drawbacks for WBD shareholders if the takeover fails.

The situation has further complicated matters, as Netflix is set to acquire WBD's movie studios, HBO cable network, and HBO Max streaming service under a separate deal worth $82.7 billion. Unlike Paramount, which has bid for the entire company, including CNN, Cartoon Network, and Discovery Channel.

Paramount must now decide whether to escalate its hostile bid or adjust its offer in response to WBD's criticisms. The company had previously stated that its latest proposal was not its "best and final" option. If it decides to proceed with a revised bid, it will face the scrutiny of regulators and competition authorities, including the US Department of Justice and the European Commission.

In contrast, Netflix remains confident in its $30 per share offer, which has already garnered significant support from WBD's board. The streaming giant claims that its merger agreement is the "superior proposal" that will deliver value to shareholders, consumers, creators, and the broader entertainment industry.

The battle for control of WBD has driven up the conglomerate's share price by nearly 170% over the past year, but it remains to be seen how this situation will unfold.

idk why paramount is so desperate , $108 billion is like, whoa that's a lot and then netflix comes along with $82.7 billion and it's like wbd just gets sold to them for a steal i think wbd should be all about the art of making movies and tv shows and not getting bought out by some big corp and paramount is just gonna end up losing money

The Paramount Skydance bid just seems like a classic Hollywood power play - all bravado and no substance . I mean, $108 billion is crazy talk! And now that Netflix has thrown its hat into the ring with a serious offer , it's clear who the real players are here. Larry Ellison might have deep pockets, but does his family guarantee really count for much? WBD's board knows what's up and isn't afraid to speak truth to power . It'll be interesting to see how Paramount adjusts its strategy now... or if they just throw in the towel . One thing's for sure, though - this corporate battle is gonna get a lot more dramatic before it's over !

I feel for Warner Bros Discovery right now . They're being super patient and transparent about their concerns with Paramount Skydance's bid. It's totally understandable that they want more value from a potential takeover . The fact that Netflix is already getting so much love from the board with its $30 per share offer is pretty sweet . But at the same time, I can see why WBD would be cautious about the risks and costs associated with accepting a hostile bid . They're trying to do what's best for their shareholders and the company as a whole . Fingers crossed that they'll find the right partner who shares their vision!

Ugh I'm so done with these corporate battles ... like what's the point of having all that money if you can't even agree on a deal? Paramount Skydance is just being super aggressive here and I don't think their $108 billion offer is worth it. Warner Bros Discovery's board has valid concerns about the risks and costs associated with this bid, you know? And now Netflix is swooping in with a way more reasonable offer of $30 per share... like, can't we all just get along?

I'm also low-key impressed by WBD's shareholders for not falling for Paramount's "full backstop" nonsense . It sounds like they're doing some serious due diligence and I respect that. This whole situation is just so complicated and I'm not sure who's going to come out on top... but one thing's for sure, it'll be a wild ride while we wait and see what happens next

omg u guys i dont get why paramount is being so aggressive with their bid its like they think wbd is just gonna fall at their feet lol wbds board is right paramont needs to come correct with a better offer or maybe just back off altogether 40 billion from larry ellison sounds nice but it aint worth risking the whole company for btw i was watching the price of wbd shares last year and i could see how much theyve been increasing its like wtf are people thinking

this takeover bid is getting CRAZY!!! $108 billion?!? no thanks I mean, i get that wbd wants to make a good deal for its shareholders and all, but 108 billion is just waaay too much like, have you seen the value of Paramount Skydance's other assets? they're not exactly swimming in gold coins here so yeah, wbd is totally justified in rejecting this bid

I think what's really crazy here is that Netflix is basically swooping in and offering $30 per share... I mean, sure, Paramount is throwing around a gazillion dollars, but is it really worth it? I've been thinking about this a lot because WBD has some amazing assets like HBO and Warner Bros studios. If Netflix can deliver on its promise of creating more content and expanding their global reach... maybe it's actually the better bet? On the other hand, if Paramount can come up with a solid plan to make WBD even more successful, then they might be onto something. The thing is, I'm not sure what the future holds for either of these companies, but one thing's for sure - this corporate battle is gonna be a wild ride

can u believe wbd is trying to block paramount skydance's $108b offer lol idk what's going on with these corp battles rn anyway i think wbd's board has a point about the risks and costs associated with the deal but at the same time, $40b personal guarantee from larry ellison? that's some serious juice meanwhile netflix is just over here like "hey guys, i got a better offer " guess we'll see how this all plays out

omg can you believe the drama unfolding in the corporate world , i mean warner bros discovery is not having it with paramount skydance's 108 billion dollar offer lol like wbd's board is all "no way jose" and now netflix comes along with a sweet 82.7 billion deal for just the movie studios hbo cable network and hbo max streaming service i'm lowkey rooting for netflix here, their proposal seems way more solid to me but of course paramount is gonna try to escalate things we'll have to wait and see what happens next

Ugh, another corporate power struggle . I mean, can't they just get along? Paramount Skydance is basically trying to strong-arm Warner Bros Discovery into selling its assets for a ridiculously low price. Like, who tries to negotiate a deal in the first place and then thinks "you know what, let's just double it and see if they blink"? And now Netflix comes along and swoops in with a $30 per share offer that everyone can get behind? Sounds like a legit way to maximize shareholder value to me... but I guess when you're dealing with corporate egos, nothing ever goes as planned . Anyway, it's probably going to end up being some fancy lawyer drama with regulators getting involved and messing everything up .

can't believe wbd is playing hard to get with paramount they're basically saying that $108b is just not enough and now netflix is swooping in like a hero with their $82.7b offer... but wait, what's the real reason behind this whole drama?