Warner Bros Discovery's board rejects Paramount Skydance's hostile bid

Warner Bros Discovery's board rejected Paramount Skydance's $108.4 billion hostile bid, citing inadequate financing assurances. The board accused Paramount of misleading Warner Bros shareholders about a cash offer backed by the Ellison family, stating, "It does not, and never has," guaranteed the deal.

Paramount's bid was deemed inferior to a merger agreement with Netflix. Netflix's offer is binding and backed by strong debt commitments without requiring equity financing.

Warner Bros raised concerns about Paramount's creditworthiness, noting its high debt levels and potential operational risks. Paramount has made six bids, claiming sufficient assets to support its offer, but Warner Bros remains skeptical, saying, "The PSKY offer provides an untenable degree of risk."