Business Insider·2026-01-07 21:09Core Points - Warner Bros. Discovery (WBD) rejected Paramount Skydance's bid for the eighth time, favoring Netflix's offer instead, and criticized Paramount's bid as the "largest leveraged buyout in history" [1] - WBD described Paramount's financial condition as "not strong," with its credit rated "junk" by S&P prior to the deal's required "extraordinary amount of debt financing" [2] - WBD's strong language indicates a desire to move on from the situation, with accusations that Paramount has acted litigiously and leaked information to the press [3] Financial Analysis - Paramount's new bid includes $40.4 billion in equity, fully backed by Oracle cofounder Larry Ellison [2] - WBD cited reports suggesting Paramount might abandon its offer and consider litigation against WBD's board, indicating potential instability in Paramount's strategy [7] Legal and Strategic Implications - M&A experts suggest that WBD's language may be a preemptive measure against potential lawsuits from either Paramount or WBD shareholders [8] - The filing appears aimed at deterring WBD shareholders from supporting Paramount's hostile bid, portraying Paramount as a "bad actor" [9] Future Outlook - Analysts believe that Paramount could still outbid Netflix, but this would require significant changes to their current bid and increased cash investment from the Ellison family and their partners [10]