Warner Bros Rejects Paramount’s $108.4B Bid, Favors Netflix’s Cleaner Deal
Warner Bros Discovery's board unanimously rejected Paramount Skydance's $108.4 billion Leveraged buyout proposal, citing excessive debt risk and operational uncertainty. The deal would have required $87 billion in new debt and a $40 billion equity guarantee from Larry Ellison—terms the board deemed untenable.
Netflix's $82.7 billion offer now emerges as the favored alternative, with analysts highlighting its lower execution risk and clearer regulatory path. Antitrust scrutiny remains a wildcard, particularly for theater chains and domestic box office dynamics.
Tech vendors servicing Warner Bros face disruption under either scenario, though a Netflix consolidation WOULD likely accelerate platform integration. Market reaction was muted, with Warner Bros shares up 1% on the news—a signal investors view the rejection as risk mitigation.
