Warner Bros Discovery is expected to reject Paramount’s $108.4 billion takeover bid and instead recommit to Netflix’s competing offer, according to sources familiar with the matter. The company’s board could announce its decision as early as Wednesday and is likely to advise shareholders to vote against Paramount’s proposal.
A rejection would mark the latest turn in a high-stakes bidding war for Warner Bros Discovery’s prized assets, which include its historic film and television studio, a vast content library and premium brands such as HBO and the HBO Max streaming service. The library spans classic titles like Casablanca and Citizen Kane alongside modern franchises including Harry Potter and Friends.
The outcome is closely watched across the entertainment industry, as securing Warner Bros Discovery’s catalogue would give the winning bidder a significant advantage in the increasingly competitive streaming market. Earlier this month, Netflix emerged as the frontrunner with a $72 billion cash-and-stock offer for Warner Bros Discovery’s non-cable assets.
Paramount chief executive David Ellison subsequently went directly to shareholders with an all-cash offer of $30 per share for the entire company. In regulatory filings, Paramount has argued that its bid is superior to Netflix’s proposal and would face fewer regulatory hurdles. The offer is backed by $41 billion in new equity from the Ellison family and RedBird Capital, along with $54 billion in debt commitments from Bank of America, Citi and Apollo.
However, Bloomberg has reported that Affinity Partners, led by Jared Kushner and previously part of Paramount’s financing group, has withdrawn from the bid. Paramount and Affinity Partners did not immediately respond to requests for comment, while a Warner Bros Discovery spokesperson declined to comment on the matter.
