WBD likely to reject Paramount's latest hostile bid

The WBD board has yet to make a final decision on Paramount’s bid, but is expected to meet next week. It is likely to continue to favour Netflix’s $82.7bn offer, according to Reuters and CNBC.

While lower, Netflix’s offer has a clearer financing structure and fewer execution risks, according to analysts.

Paramount, however, has argued its bid would face fewer regulatory obstacles.

Before Christmas, Oracle Co-Founder Larry Ellison sought to bolster Paramount’s bid by saying he would personally guarantee $40.4bn for its hostile bid for WBD.

Warner Bros' board previously urged shareholders to reject Paramount's bid, citing concerns over financing certainty and the absence of a full guarantee from the Ellison family.

Netflix’s cash and stock transaction is for the Warner Bros studio and its streaming services, including HBO. Paramount Skydance is offering to buy all of WBD.

Some WBD shareholders think that Paramount might sweeten its offer further.