Warner Bros Discovery is expected to urge its shareholders to reject Paramount Skydance’s $108.4bn (£80.75bn) takeover bid as early as Wednesday, according to media reports.
Paramount has described its proposal as “superior” to the $72bn agreement Warner Bros reached with Netflix covering its film and streaming businesses.
However, the Financial Times reports that Warner Bros will advise investors to vote against the bid, citing concerns over how the acquisition would be financed.
Complicating the deal further, Affinity Partners, a key backer of Paramount’s bid has reportedly withdrawn its support. The investment firm, founded by Jared Kushner, the son-in-law of US President Donald Trump, is said to have pulled out due to the involvement of “two strong competitors”.
Warner Bros declined to comment when contacted. Paramount and Affinity have also been approached for a response.
The media group formally put itself up for sale in October after receiving “multiple” expressions of interest from potential buyers, including Paramount Skydance.
On 5 December, Warner Bros Discovery announced it had agreed to sell its film and streaming businesses to Netflix, a move that now appears central to its opposition to Paramount’s takeover bid.
Faridah Abdulkadiri
Follow us on:
