Warner Bros. Discovery Set To Reject Paramount's Latest Takeover Bid After Board Meets Next Week

Core Viewpoint - Warner Bros. Discovery (WBD) is likely to reject Paramount's amended hostile takeover bid due to concerns about delays affecting its planned cable spinoff if the deal fails [1] Group 1: WBD's Strategic Moves - WBD has agreed to sell its studio and streaming assets to Netflix for a cash and stock transaction valued at $27.75 per share, with plans to create a standalone publicly traded linear television company called Discovery Global by Q3 of next year [2] - WBD's board is considering Paramount's revised offer, which includes a $40.4 billion personal financial guarantee from Larry Ellison and a breakup fee of $5.8 billion, but the base bid remains at $30 per share in cash [4][5] Group 2: Paramount's Position - Paramount, led by David Ellison, claims it has a clearer path to regulatory approval for its takeover bid, although investor sentiment suggests uncertainty about this [3] - Paramount's total equity value in the bid is $77.9 billion, with an enterprise value of $108.4 billion, including net debt and non-controlling interests [6] Group 3: Market Reactions and Future Considerations - Some WBD shareholders have publicly urged Paramount to enhance its offer, indicating a belief that a sweeter deal may be forthcoming [6] - Analysts suggest that if Paramount raises its bid, Netflix may respond, with some believing that Paramount's smaller size and greater need for the deal may lead to its eventual success [7]