Warner Bros Discovery Rejects Paramount's $108B Bid, Citing Undervaluation & Risk

• Warner Bros Discovery (WBD) plans to recommend shareholders reject Paramount’s $108 billion hostile takeover bid.
• WBD argues Paramount's offer undervalues the company and carries significant financing risks, comparing it unfavorably to Netflix's proposal.
• Paramount bypassed WBD management with an all-cash $30/share offer after losing an earlier auction to Netflix.
• Affinity Partners, founded by Jared Kushner, withdrew its backing for Paramount's bid, adding to financing uncertainty.
• WBD remains confident in Netflix's offer, which includes a $5.8 billion break-up fee and values assets at $83 billion, while leaving the door open for a revised Paramount bid.

Why It Matters: WBD rejects Paramount's $108B bid due to undervaluation and financing concerns, favoring Netflix's offer.