Warner Bros. Discovery Rejects Paramount's Amended Takeover Bid, Reaffirms Netflix Merger

Warner Bros. Discovery's board of directors has unanimously rejected Paramount Skydance's amended takeover bid, reaffirming its commitment to the existing merger agreement with Netflix. The board cited concerns over the significant debt financing associated with Paramount's proposal and the potential risks and uncertainties it poses to shareholders.

In a statement, Warner Bros. Discovery Chairman Samuel Di Piazza Jr. emphasized that the company's agreement with Netflix offers superior value and greater certainty compared to Paramount's offer.

Paramount Skydance had previously increased its offer, including a personal guarantee from Oracle co-founder Larry Ellison to back $40.4 billion in equity financing. Despite these enhancements, Warner Bros. Discovery's board determined that the proposal remains inadequate and not in the best interests of the company or its shareholders.

The merger with Netflix, announced in December, involves the sale of Warner Bros. Discovery's studio and streaming assets, including HBO Max, to Netflix for approximately $82.7 billion. This deal excludes the company's cable networks, which are set to be spun off into a separate entity.

Paramount Skydance has not yet responded to the latest rejection. The competition for Warner Bros. Discovery underscores the ongoing consolidation trends within the media and entertainment industry.