Warner Bros Rejects Paramount's Risky $108B Bid, Favors Netflix Deal

• Warner Bros Discovery (WBD) board unanimously rejected Paramount Skydance's revised $108.4 billion acquisition bid, citing it as a "risky leveraged buyout."
• WBD reaffirmed its commitment to Netflix's $82.7 billion offer, which it deems a "superior proposal" with clearer financing and fewer execution risks.
• Paramount's bid, involving $87 billion in debt, would create the largest leveraged buyout in history and further weaken its junk-rated credit.
• WBD highlighted significant costs, including a $2.8 billion Netflix termination fee, if it were to abandon the current deal for Paramount's offer.
• The decision keeps WBD on track with Netflix, ending Hollywood's closely watched takeover battle amid concerns over media consolidation.

Why It Matters: WBD rejected Paramount's debt-laden bid, prioritizing Netflix's offer for its financial stability and value.