Warner Bros Leans Towards Netflix Over Paramount for Acquisition

Warner Bros Discovery is reportedly leaning towards rejecting the $108.4 billion acquisition proposal from Paramount Skydance, favoring a proposal from Netflix for its non-cable assets.

According to Reuters, the board of directors of Warner Bros Discovery is expected to recommend that shareholders reject the Paramount offer. The decision may be announced as early as today.

Netflix has submitted an offer of over $82 billion for Warner Bros Discovery's non-cable assets. Paramount CEO David Ellison had approached Warner Bros Discovery shareholders, submitting a $108.4 billion proposal to acquire the entire company.

The financing of Paramount's proposal is based on $41 billion in new equity and $54 billion in debt. Jared Kushner's investment firm Affinity Partners is withdrawing from the process.

Warner Bros Discovery's portfolio includes classic works such as "Casablanca" and "Citizen Kane", as well as modern hits such as "Harry Potter" and "Friends". The company also owns the streaming platform HBO Max.