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Warner Bros Discovery Board Urges Shareholders to Reject Paramount Skydance Bid, Backs Netflix Deal

The board cites unresolved financing risks, including uncertainty over an Ellison family guarantee.

Overview

  • Paramount Skydance launched a hostile, all‑cash offer valuing Warner Bros Discovery at $108 billion to acquire the entire company.
  • Netflix has a signed carve‑out agreement to buy Warner Bros and HBO/HBO Max for $82.7 billion including debt, with CNN and Discovery to be placed in a new listed company called Discovery Global.
  • Warner’s directors say the PSKY proposal relies on heavy new borrowing and that claims of an “unlimited” Ellison family backstop are not supported.
  • Paramount Skydance publicly disputed the board’s characterization of its guarantees, and its hostile offer remains open through January 8.
  • Affinity Partners, the investment firm linked to Jared Kushner, withdrew from the PSKY consortium, as WBD and Paramount shares fell and Netflix gained after the board’s stance.