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.
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.
, $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 
. 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 
!
. 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 
. 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! 
... 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?
. 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 
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 
so yeah, wbd is totally justified in rejecting this bid 
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 
meanwhile netflix is just over here like "hey guys, i got a better offer 
" guess we'll see how this all plays out 
, 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 
we'll have to wait and see what happens next 
. Anyway, it's probably going to end up being some fancy lawyer drama with regulators getting involved and messing everything up 
with their $82.7b offer... but wait, what's the real reason behind this whole drama?