Warner Bros. Discovery Poised to Reject Paramount's $108.4 Billion Bid, Favors Netflix in Bidding War
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Warner Bros. Discovery is likely to advise its shareholders to reject Paramount's massive $108.4 billion takeover bid, opting instead to pursue a renewed deal with Netflix. According to sources, the decision could be announced as early as Wednesday, marking a significant twist in the high-stakes battle for control of Warner Bros.' vast film and TV studio, as well as its extensive library of classic and contemporary content, including iconic franchises like Harry Potter, Friends, and HBO. The winner of the bidding war will gain a substantial advantage in the streaming market, with access to a wealth of content that has long been coveted by competitors. In a recent development, Netflix successfully secured a $72 billion deal for Warner Bros.' non-cable assets, prompting Paramount to take a more aggressive approach. Paramount's $30-a-share, all-cash bid for the entire company is backed by $41 billion in new equity and $54 billion in debt commitments from leading financial institutions. However, Paramount's financing partner, Affinity Partners, has unexpectedly withdrawn from the deal, according to Bloomberg. Despite this setback, Paramount remains committed to its offer, which it claims is superior to Netflix's and would face less regulatory scrutiny. The outcome of this intense bidding war will have significant implications for the future of the entertainment industry and the streaming wars.
