Warner Bros. Discovery (WBD) plans to recommend that shareholders reject Paramount’s hostile $108 billion (€92 billion) takeover bid, with an announcement expected as early as Wednesday, according to The Irish Times.
Sources close to the matter say WBD is close to finalising its formal response after the business led by David Ellison went directly to shareholders last week with a full cash offer of $30 per share. The move followed Paramount’s failure to secure the studio and streaming platform, which was instead acquired by Netflix.
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Company questions Larry Ellison’s backing for the deal
In its official filings, Warner Bros. Discovery is expected to outline four core criticisms of Paramount’s proposal. The company argues that the valuation, financing structure, and overall terms fall short when compared with the agreement reached with Netflix earlier this month. WBD also raises doubts over whether Oracle co-founder Larry Ellison will ultimately support the transaction.
The documentation is still subject to final approval by the WBD board, sources said, and the timeline could change. On Tuesday, Warner Bros. Discovery shares were trading at around $29 per share, suggesting investors believe Paramount may increase its bid.
Photo: WBD
