According to the Bloomberg report, the latest twist in the race for acquiring the production house comes amid Warner Bros Discovery’s concerns regarding financing and other such terms.
The board of Warner Bros Discovery is likely to reject the offer by Paramount Skydance as early as Wednesday and may ask shareholders to vote against the takeover, Reuters said in its report.
Netflix remains a favourite
The Warner Bros board, which held deliberations and reviews of the Paramount bid, still hold the view that Netflix’s offer is a better one, according to the people who spoke to Bloomberg.
Netflix was the first to bid to acquire Warner Bros Discovery earlier this month, with Paramount Skydance following suit soon with a bigger offer.
The Warner Bros board is likely to file its response to Paramount’s tender offer by Wednesday, Bloomberg reported.
Such a decision would mean that Netflix would get to retain its buyout offer and gain access to Warner Bros’ storied film and TV studio, and its extensive film and television library.
The race to acquire Warner Bros Discovery is particularly an interesting one, as the winner gets the portfolio including classics ranging from “Casablanca” and “Citizen Kane” to contemporary favourites like “Harry Potter” and “Friends,” HBO and the HBO Max streaming service.
Netflix vs Paramount: What’s at stake?
The winner in the race to acquire Warner Bros Discovery, whether it is Netflix or Paramount Skydance, will gain a big advantage in the streaming wars. One of them will get to keep with them a treasure trove of content, a library that has long been eyed for acquisition.
Netflix earlier this month emerged victorious with a $27 cash-and-stock bid for Warner Bros’ non-cable assets.
Paramount CEO David Ellison then went directly to Warner Bros’ shareholders with a $30-a-share, all-cash bid for the whole company.
Paramount has labelled its offer as superior in a regulatory filing, saying it will enjoy a better path in regulatory approval.
Jared Kushner’s company exits bid
Jared Kushner’s Affinity Partners has exited the Paramount bid to acquire Warner Bros Discovery, as per Bloomberg.
Paramount’s $108.4 billion bid to acquire the TV studio had seen Affinity as one of its financing partners.
The participation of Donald Trump’s son-in-law in a deal that the president has said he would personally review drew a lot of unwelcome attention to Kushner, Bloomberg reported quoting people familiar with the news.
The Paramount bid is now financed by $41 billion in new equity, which is backed by the Ellison family and RedBird Capital, and $54 billion of debt commitments from Bank of America, Citi and Apollo.
