Warner Bros accuses Paramount of misleading investors as it rejects $108bn bid

Core Viewpoint - Warner Bros Discovery has accused Paramount of misleading investors regarding its $108 billion takeover bid, urging shareholders to reject the offer due to concerns over its financing and structure [1][2]. Group 1: Warner Bros' Position - Warner Bros Discovery claims that Paramount's assertion of a "full backstop" from the Ellison family is false, stating that the offer relies on an "unknown and opaque revocable trust" [2]. - The board of Warner Bros unanimously recommended shareholders vote against Paramount's offer, labeling it as "illusory" and highlighting the risks involved [5][6]. - Warner Bros believes that a previously agreed $83 billion offer from Netflix is superior, as it is backed by a public company with a market value exceeding $400 billion [5][8]. Group 2: Paramount's Offer Details - Paramount's $30-per-share offer includes $40 billion in equity funding, with approximately $24 billion coming from the sovereign wealth funds of Saudi Arabia, Abu Dhabi, and Qatar [3]. - The Ellison family is contributing $12 billion to the bid, while RedBird Capital, a private equity fund, is also involved as Paramount's second-largest shareholder [3]. Group 3: Changes in Consortium Support - Jared Kushner's private equity firm, Affinity Partners, has withdrawn its support from Paramount's bid, along with Tencent, which previously pledged $1 billion for an earlier bid [4][7].