Warner Bros. will urge shareholders against Paramount’s $108.4bn deal, reports claim

• Paramount has claimed its offer is "superior", but Warner Bros. has reportedly warned shareholders of financing concerns in this potential deal.
• The Netflix deal was already agreed, subject to regulatory approval, albeit for less money.

Warner Bros. Discovery is looking to reject Paramount Skydance’s $108.4 billion bid for the company, reports claim.

According to the BBC, Warner Bros. shareholders will be urged to reject the offer as soon as today, December 17th.

Paramount’s all-cash bid came after Netflix had already offered $82.7bn for Warner Bros., which was accepted by company leadership. The Netflix deal, if approved by regulators, would see the streaming giant spin out parts of the operation in favour of Warner's film and television studios.

However, Paramount has claimed its offer is "superior".

Strong competition

Warner Bros. put itself up for sale this autumn following interest from multiple potential buyers. A key backer in Paramount’s bid, Affinity Partners, has reportedly pulled out due to the involvement of "two strong competitors".

Thus, Warner Bros. shareholders will reportedly be advised against Paramount’s offer over financing concerns.

If either deal goes ahead, it would be among the most significant acquisitions in the history of entertainment, with major franchises like Harry Potter and Game of Thrones on the line.

The deal would also include the games division at Warner Bros., meaning Rocksteady Studios, NetherRealm Studios, TT Games, Avalanche Software, and WB Games Montréal could all be acquired. However, Netflix co-CEO Gregory Peters said the games division is "relatively minor compared to the grand scheme of things".