Warner Bros likely to reject Paramount's latest hostile bid, source says

Core Viewpoint - Warner Bros Discovery is likely to reject Paramount Skydance's amended $108.4 billion hostile bid despite a personal guarantee from billionaire Larry Ellison backing the offer [1][2] Group 1: Bid Details - Paramount Skydance's bid remains at $30 per share in cash, but it has increased its regulatory reverse termination fee to match Netflix's offer and extended the tender offer deadline [3] - Netflix's offer of $82.7 billion, while lower in headline value, is perceived to have a clearer financing structure and fewer execution risks [3] Group 2: Investor Reactions - Harris Oakmark, Warner Bros' fifth largest investor with 96 million shares, stated that the revised offer from Paramount is not "sufficient" and does not cover the breakup fee [4] Group 3: Strategic Considerations - Warner Bros' board previously urged shareholders to reject Paramount's bid, citing concerns over financing certainty and the lack of a full guarantee from the Ellison family [5] - Paramount argues that its bid would face fewer regulatory obstacles compared to Netflix's proposal, which is subject to fluctuations in Netflix's share price [5] Group 4: Regulatory Environment - Lawmakers from both parties have expressed concerns about further consolidation in the media industry, with U.S. President Donald Trump indicating plans to weigh in on the acquisition [6]