Warner Bros Discovery is preparing to formally recommend that its shareholders reject a monumental $108.4 billion acquisition proposal from Paramount Skydance, with an official announcement anticipated as early as Wednesday. This development follows Paramount’s assertion that its bid is financially superior to a separate $72 billion agreement Warner Bros recently finalized with Netflix for its film and streaming divisions.
The acquisition landscape has grown increasingly complex with the reported withdrawal of a key financial supporter, Affinity Partners, from the Paramount-led bid. Founded by prominent US businessman Jared Kushner, son-in-law of former President Donald Trump, Affinity cited the emergence of ‘two strong competitors’ as the reason for its exit, though specifics were not disclosed.
According to insights from the Financial Times, Warner Bros’ opposition to the Paramount offer is multifaceted, centering primarily on concerns regarding the feasibility and structure of the proposed financing. This corporate maneuvering began in October when Warner Bros Discovery initiated a formal sale process after attracting numerous expressions of interest from potential acquirers.
The current situation presents a tale of two competing transactions. On December 5th, Warner Bros Discovery announced its agreement to transfer film and streaming assets to Netflix. Shortly thereafter, Paramount Skydance—backed by the billionaire Ellison family, which maintains close presidential connections—countered with a comprehensive bid for the entire company, including valuable television networks.
Should any acquisition proceed, regulatory hurdles await. Both U.S. and European competition authorities are expected to subject a Warner Bros takeover to intense scrutiny. The successful acquirer would obtain a commanding position in the streaming marketplace, gaining control over an extensive content library featuring iconic franchises including Harry Potter, Friends, and the HBO Max streaming platform.
The potential consolidation has drawn criticism from industry representatives. The Writers Guild of America East and West branches have jointly called for regulators to block the merger, warning that such market concentration would inevitably lead to reduced wages, significant job cuts, and diminished content variety for viewers.
All involved parties—Warner Bros Discovery, Paramount Skydance, and Affinity Partners—have declined to comment publicly on these recent developments when contacted by news organizations.