Warner Bros Discovery’s board has rejected Paramount Skydance’s revised $108.4 billion bid, citing concerns over the deal’s financing structure. The board unanimously turned down the offer, labeling it a “risky leveraged buyout” that could burden the company with $87 billion in debt. Instead, It is sticking with its original deal with Netflix, a $82.7 billion cash-and-stock offer for its film and television studio and other assets.
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Paramount’s bid, backed by a $40 billion guarantee from Oracle co-founder Larry Ellison, was deemed inadequate by Warner Bros’ board. Analysts view Netflix’s offer as clearer and less risky, with fewer execution hurdles. The decision keeps Warner Bros on track to pursue the Netflix deal, despite Paramount’s efforts to acquire the studio.
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