The Warner Bros. Discovery (WBD) board has again recommended that the studio’s shareholders reject a hostile takeover offer from Paramount Skydance.
In a letter to shareholders published on Wednesday (Jan 7), the WBD board said Paramount’s revised $108.4bn hostile bid – announced on December 22 – amounted to a risky leveraged buyout that investors should reject.
The board said the Paramount bid is “inferior” to the previously announced deal with Netflix to buy WBD’s studio and streaming business for $82.7bn.
The WBD board stressed that Paramount's offer depends on "an extraordinary amount of debt financing" that heightens the risk of closing.
It described Paramount as a company with a $14bn market capitalisation attempting an acquisition requiring $94.65bn of debt and equity financing, nearly seven times its total market capitalisation.
“The transaction Paramount Skydance is proposing is in effect a leveraged buyout (LBO). In fact, it would be the largest LBO in history with $87bn of total pro forma gross debt.”
The board went on to reaffirm its commitment Netflix’s deal for WBD’s film and television studio and streaming assets.
“Netflix is a company with a market capitalisation of approximately $400bn, an investment grade balance sheet, an A/A3 credit rating and estimated free cash flow of more than $12bn for 2026. The merger agreement with Netflix also provides WBD with more flexibility to operate in a normal course until closing. Given these factors, the Board determined that the Netflix merger remains superior to Paramount Skydance’s amended offer.”
BBC appoints Rhodri Talfan Davies as Interim Director General
The BBC Board has confirmed that Rhodri Talfan Davies will act as Interim Director-General, after Director-General Tim Davie officially stands down on 2 April 2026. In doing so, the organisation has revealed that the process to appoint a new Director-General is underway.
Sky unveils plans for major redevelopment of Livingston campus
Sky has confirmed plans for a major investment in an expanded Scottish office in Livingston, having submitted a full planning application.
Christian Vesper steps down as Fremantle’s global drama and film CEO
Christian Vesper is to step down from his position as CEO of Global Drama and Film at production and distribution group Fremantle.
WPP launches single global production platform
Ad agency group WPP has launched a single production brand, WPP Production, to house its global production capabilities and teams.
Base FX opens London studio
Base FX, one of Asia's leading visual effects and animation studios, has opened a London studio as part of a strategic expansion into the European market.
.jpg)
