Warner Bros rejects Paramount's revised leveraged buyout bid

Warner Bros Discovery's board unanimously rejected Paramount Skydance's revised $108.4 billion offer, saying it depended on an extraordinary amount of debt, and reaffirmed its agreement with Netflix's roughly $82.7 billion proposal.

Warner Bros Discovery's board has unanimously turned down Paramount Skydance's revised $108.4 billion hostile offer for the studio. The board said the proposal relied on an extraordinary amount of debt and described it as a risky leveraged buyout. Warner Bros also reaffirmed its merger agreement with Netflix, which has offered about $82.7 billion for the studio and related assets. The takeover contest has drawn attention because the studios control large content libraries and major franchises. Key points: - Warner Bros' board voted unanimously to reject Paramount Skydance's amended $108.4 billion cash bid, citing heavy debt financing and execution risk. - Paramount's financing plan would include about $40 billion in equity personally guaranteed by Larry Ellison and roughly $54 billion in debt, which Warner Bros said would leave the buyer with around $87 billion of debt after closing. - Warner Bros affirmed its agreement with Netflix's roughly $82.7 billion proposal and noted substantial costs and risks if it were to abandon that deal. Summary: Warner Bros' decision preserves its path toward the previously announced Netflix transaction while rejecting Paramount's debt-heavy offer. The board cited financing and completion risks as its main reasons for rejection. Undetermined at this time.