Warner Bros likely to decline Paramount's latest hostile offer, says CNBC

• Paramount attempted to sweeten its offer by having Ellison personally guarantee equity financing and raising the regulatory reverse termination fee
• Warner Bros appears unconvinced by the revised terms, citing concerns over valuation, strategic fit and deal certainty
• The decision keeps Warner Bros on track to negotiate a rival cash-and-stock deal with Netflix instead

Warner Bros Expected to Reject Paramount's $108.4B Hostile Bid

Warner Bros Discovery is likely to decline Paramount Skydance's amended $108.4 billion hostile takeover offer, according to CNBC. The expected rejection comes despite Paramount's attempts to strengthen its bid through a $40.4 billion personal guarantee from Oracle co-founder Larry Ellison.

Key Details:

• Paramount raised its offer and included Ellison's personal guarantee for equity financing
• The company increased its regulatory reverse termination fee and extended the tender offer deadline
• Offer price stands at $30 per share

Strategic Implications:

The anticipated rebuff suggests Warner Bros Discovery remains unconvinced about the deal's valuation, strategic fit, and certainty despite Paramount's enhanced terms. This decision could clear the path for Warner Bros to pursue alternative strategic options, including a potential cash-and-stock transaction with Netflix.

Market Context:

The rejection underscores ongoing consolidation pressures in the media and entertainment sector as traditional studios navigate streaming competition and evolving content distribution models. Paramount's aggressive pursuit, backed by one of tech's wealthiest individuals, highlights the high stakes in the industry's transformation.

Neither company provided immediate comment on the report. The development marks another chapter in the ongoing reshaping of Hollywood's major studios as they adapt to digital disruption and seek scale to compete with tech-driven streaming platforms.