Warner Bros Rejects Paramount’s Massive $108 Billion Bid, Backs Netflix Deal Instead

Warner Bros. Discovery is set to reject a huge takeover offer. The company will advise shareholders to vote against Paramount’s $108.4 billion bid. This news comes from a Reuters report. The board’s decision is expected soon.This move signals a major twist in Hollywood‘s high-stakes merger wars. Warner Bros. is instead recommitting to an earlier offer from Netflix. The choice will reshape the streaming landscape.

Netflix Emerges as Preferred Partner in Streaming War

Netflix’s offer is valued at $72 billion. It targets Warner Bros.’ non-cable assets. This includes the famed film and TV studio. The library holds classics like Casablanca and modern hits like Harry Potter.According to Reuters, the winner gets a massive content advantage. Warner Bros.’ portfolio also includes HBO and HBO Max. Securing this library has long been a goal for streaming giants.

Paramount’s Aggressive Play Falls Short

Parantom Global made a direct appeal to shareholders. CEO David Ellison proposed a $30-per-share all-cash deal. The bid totaled $108.4 billion for the entire company. Paramount argued its offer had a clearer regulatory path.Financing included $41 billion in new equity. The Ellison family and RedBird Capital backed it. Bank of America, Citi, and Apollo committed $54 billion in debt. However, Bloomberg reports Jared Kushner’s Affinity Partners has exited the battle.

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The rejection of Paramount’s bid solidifies a new alliance. The streaming wars have entered a decisive phase. The Warner Bros. and Netflix partnership now looks inevitable.

Info at your fingertips

Q1: How much was Paramount’s offer for Warner Bros.?

Paramount Global made a $108.4 billion all-cash offer. The bid was $30 per share for the entire company. Warner Bros. is set to reject this proposal.

Q2: What is the value of the Netflix deal?

Netflix’s earlier offer is worth $72 billion. It is a cash-and-stock bid. This deal is specifically for Warner Bros.’ non-cable assets like its studio and library.

Q3: Why is this deal so important for streaming?

The winner gains a legendary content library. It includes everything from HBO to the Harry Potter franchise. This content is key to winning subscribers in the competitive streaming market.

Q4: What happens next in the process?

The Warner Bros. board will formally advise shareholders to vote no. The company will then likely proceed with the Netflix agreement. Regulatory approvals will be the next major step.

Q5: Did all of Paramount’s financial backers stay?

No, not all backers remained. According to Bloomberg, Jared Kushner’s Affinity Partners has exited the financing group. This was part of the consortium supporting Paramount’s bid.