Warner Bros Discovery is expected to recommend that its shareholders vote against Paramount Skydance’s proposed $108.4 billion takeover, according to sources familiar with the matter. The company’s board may make its position public as early as this week, marking a significant development in the intensifying battle for one of the most valuable entertainment portfolios in the world.
The move signals renewed confidence in Netflix’s competing bid, which has gained momentum in recent weeks. Warner Bros Discovery has reportedly leaned toward backing Netflix’s offer for its non-cable assets, a deal that would reshape the balance of power in the global streaming industry. The assets at the center of the bidding war include the legendary Warner Bros film and television studio, the expansive content library, and premium brands such as HBO and the HBO Max streaming service.
Industry observers note that control of this library would give the winning bidder a decisive advantage in the ongoing streaming wars. Netflix recently submitted a $72 billion cash and stock offer for Warner Bros Discovery’s non-cable businesses, positioning itself as a frontrunner in the contest.
Paramount’s proposal followed soon after, with CEO David Ellison approaching Warner Bros Discovery shareholders directly with a $30 per share all-cash offer for the entire company. Paramount has argued in regulatory filings that its bid is financially superior and faces fewer regulatory hurdles. The offer is supported by significant financing, including new equity from the Ellison family and RedBird Capital along with large debt commitments from major financial institutions.
However, the exit of Jared Kushner’s Affinity Partners from Paramount’s financing group has added uncertainty to Paramount’s bid. With shareholder sentiment and board recommendations playing a crucial role, the final outcome could redefine the future of major studios and streaming platforms alike.