Warner Bros likely to reject Paramount offer: Reuters report

NEW YORK, LOS ANGELES: The new year may not bring great news for Paramount Skydance, if a Reuters report is to be believed. The news agency, quoting an unnamed internal source, said that Warner Bros Discovery is likely to reject the David Ellison-headed media juggernaut’s amended  $108.4 billion hostile bid for the Hollywood studio despite a personal guarantee from his billionaire father, Larry Ellison.

Reuters further reported that no decision has been taken by the Warner Bros Discovery board as yet, but it is expected to meet next week to discuss the way forward. Both the companies refused to officially come on record on reports that the board had already taken a decision. It may be recalled that the Warner Bros Discovery board had urged its shareholders to reject the Paramount bid.

Paramount had then taken steps to sweeten its $30 per share all-cash-offer for the whole company by raising its regulatory reverse termination fee to $5.8 billion matching Netflix’s proposal as well as extending its tender offer deadline.

The global streamer has proposed to pay $82.7 billion in a cash-cum-stock deal to acquire the Warner Bros studio, streaming services and content library in a definitive agreement signed between the two. A penalty of $2.8 billion would have to be paid by the latter if it breaks the agreement.