The Guardian·2026-01-07 12:35Core Viewpoint - Warner Bros Discovery (WBD) has urged shareholders to reject a $108.4 billion hostile takeover bid from Paramount Skydance, labeling it as "inadequate" amid a fierce corporate battle for control of the media conglomerate [1][4]. Group 1: Takeover Bid Details - Paramount Skydance's bid is characterized as the "largest LBO in history," which poses significant risks to WBD shareholders if the offer fails [5]. - The revised offer from Paramount includes a termination fee of $5.8 billion, which matches the breakup fee WBD would incur if it exits its $82.7 billion deal with Netflix [5]. Group 2: Financial Guarantees and Flexibility - Larry Ellison, co-founder of Oracle, has provided a personal guarantee exceeding $40 billion to support Paramount's bid, addressing WBD's concerns regarding financial flexibility [2]. - WBD's board has expressed skepticism about Paramount's ability to complete the offer, citing insufficient value and uncertainty [4]. Group 3: Regulatory Scrutiny - Both the Netflix deal and Paramount's bid for WBD are anticipated to face significant regulatory scrutiny, with concerns raised by lawmakers and industry figures [6]. Group 4: Support for Netflix Deal - Co-CEOs of Netflix, Ted Sarandos and Greg Peters, reaffirmed their support for the merger with WBD, emphasizing it as the superior proposal that would benefit stockholders and the broader entertainment industry [7]. - The merger is expected to combine complementary strengths and enhance storytelling opportunities for audiences [8].