Warner Bros. Poised to Reject Paramount Bid, Prefers Netflix Deal Over Financing Woes

• Warner Bros. Discovery (WBD) plans to reject Paramount Skydance Corp.'s $10.84 billion takeover bid due to financing and operational concerns.
• WBD's board favors Netflix's $8.3 billion offer, citing superior value, certainty, and terms compared to Paramount's proposal.
• A key concern is Paramount's financing, backed by a revocable trust of Larry Ellison, raising fears of asset withdrawal.
• WBD also worries about insufficient operational flexibility during the year-long regulatory approval period under Paramount's terms.
• WBD's existing agreement with Netflix includes a clause allowing Netflix to match any superior offer, maintaining their current deal.

Why It Matters: Warner Bros. leans towards Netflix, rejecting Paramount's bid over financing and operational uncertainties.