{“title”:”Warner Bros. Rejects $77.9B Paramount Bid, Backs Netflix”,”body”:”> At a Glance
> – Warner Bros. Discovery rejected Paramount’s $77.9 billion hostile takeover
> – Board urges shareholders to accept Netflix’s $72 billion offer for studio/streaming only
> – Jan. 21 deadline for shareholders to tender shares
> – Why it matters: Decision will reshape Hollywood’s power structure and affect thousands of jobs
Warner Bros. Discovery dug in against Paramount’s sweeping takeover attempt, telling investors the richer bid carries too much debt and too little protection. The studio giant instead doubled down on Netflix’s lower-but cleaner-offer for its entertainment assets.
## Warner’s Rejection
The board unanimously ruled Paramount’s offer “not in the best interests” of the company or shareholders.
Chair Samuel Di Piazza Jr. said:
> “Paramount’s offer continues to provide insufficient value, including terms such as an extraordinary amount of debt financing that create risks to close and lack of protections for our shareholders if a transaction is not completed.”
He added the Netflix pact “will offer superior value at greater levels of certainty.”
## What Each Bidder Wants
| Buyer | Offer | Assets Sought | Payout If Blocked |
|——-|——-|—————|——————-|
| Netflix | $72B | Studio + HBO Max/Discovery streaming only | $5.8B |
| Paramount | $77.9B | Entire company-studio, streaming, CNN, Discovery networks | $5.8B |
Matched Netflix’s breakup fee after Larry Ellison’s $40.4B equity guarantee.
## Regulatory & Labor Hurdles
Both deals face antitrust reviews that could stretch past a year. DOJ intervention, overseas challenges, and potential political scrutiny under President Trump cloud timelines.
Entertainment unions SAG-AFTRA and the Writers’ Guild of America already oppose both transactions.
Exhibitor group Cinema United, representing 60,000+ screens, warned Congress that further consolidation threatens jobs and filmmaking diversity.
## Key Takeaways
– Warner prefers Netflix’s slimmer, more certain deal despite lower headline price
– Paramount’s higher bid labeled a risky leveraged buyout by Warner’s board
– Spin-off of news/cable assets is baked into Netflix plan
– Shareholder vote set for January 21
The clock ticks toward the January deadline as investors weigh certainty against cash in a battle that will redraw Hollywood’s map.”,”meta_description”:”Warner Bros. snubs Paramount’s $77.9B bid, backs Netflix’s $72B offer. Shareholders must decide by Jan 21 amid union pushback and antitrust risk.”,”categories”:[“Business News”,”Corporate News”]}
