Warner Bros Discovery rejects offer from Paramount Skydance

Warner Bros Discovery can announce against Paramount Skydance’s $108.4 billion bid takeover. The board also advises shareholders to vote against the offer.

According to closed alliances, on Wednesday, Warner Bros Discovery announced that it will take over Paramount Skydance with $108.4 billion bid. Simultaneously, the board advises shareholders to vote against the offer.

The decision came in as the contract was renewed with Netflix, but with a slight twist in the race for assets that include Warner Bros’ storied film and TV studio. It also includes Warner Bros’ storied film and TV studio, and its extensive film and television library, whose portfolio includes classics ranging from “Casablanca” and “Citizen Kane” to contemporary favourites like “Harry Potter” and “Friends,” HBO and the HBO Max streaming service.

A spokesperson from Warner Bros Discovery refused to comment.

As a reward, the winner will gain a big advantage in the streaming wars by locking up a deep content library that has long been an acquisition target.

Netflix earlier this month emerged victorious with a $27 cash-and-stock bid for Warner Bros’ non-cable assets.

Paramount CEO David Ellison then went directly to Warner Bros’ shareholders with a $30-a-share, all-cash bid for the whole company.

In regulatory filings, Paramount has said its bid is superior to Netflix’s offer and would enjoy a clearer path to regulatory approval. Its offer is financed by $41 billion in new equity, which is backed by the Ellison family and RedBird Capital and $54 billion of debt commitments from Bank of America, Citi and Apollo.

Jared Kushner’s Affinity Partners, which was one of Paramount’s financing partners, is exiting the battle, according to Bloomberg.

Paramount and Affinity Partners did not immediately respond to Reuters’ request for comment.