Warner Bros set to urge shareholders to reject $108bn Paramount takeover bid

Warner Bros Discovery is expected to advise its shareholders to reject Paramount Skydance’s $108.4bn (£80.75bn) takeover offer as early as Wednesday, according to media reports.

Paramount has described its proposal as superior to the $72bn deal Warner Bros agreed with Netflix for its film and streaming businesses. However, reports say Warner Bros has concerns about how Paramount’s bid would be financed.

The Financial Times also reported that Affinity Partners, a key backer of Paramount’s bid, has withdrawn its support, citing the presence of “two strong competitors”. Affinity was founded by Jared Kushner, the son-in-law of US President Donald Trump.

Warner Bros declined to comment on the reports, while Paramount and Affinity have also been approached for responses.

Warner Bros put itself up for sale in October after receiving multiple expressions of interest, including from Paramount Skydance. On 5 December, it announced an agreement to sell its film and streaming assets to Netflix. Paramount launched its competing bid for the entire company, including its television networks, a week later.

Paramount is backed by the billionaire Ellison family, which has close ties to the president. Any takeover is expected to face close scrutiny from competition regulators in both the US and Europe.

A successful acquisition would give the new owner a major advantage in the streaming market, with access to a vast catalogue including Harry Potter, the MonsterVerse, Friends and HBO Max.

The proposed merger has drawn criticism from parts of the film industry. The Writers Guild of America’s East and West branches have called for the deal to be blocked, warning it could lead to job losses, lower wages and reduced content for viewers.