Warner Bros. Discovery intends to reject its Paramount Skydance acquisition proposal, even though the rival company has modified the terms of its offer, according to sources familiar with the internal processes.
The Warner Bros. board of directors has not made a final decision, but is expected to meet next week. Among the key reservations, the sources said, is the fact that Paramount has yet to raise the financial size of its offer, which Warner Bros. has already deemed inferior to that of Netflix.
Paramount, owner of the eponymous studio and MTV, has launched a public campaign to build support for its proposed takeover of Warner Bros. which owns HBO and CNN. The company made public an all-cash offer on Dec. 8 at $30 per share, three days after Warner Bros. had accepted a deal with Netflix, which involves only its studio and streaming operations. Since then, Paramount has twice revised its proposal, most recently adding a guarantee from billionaire Larry Ellison that it would personally cover $40.4 billion in equity and other commitments.
Paramount is controlled by Larry Ellison and his son, David Ellison, a film producer who is attempting to form a new media group. The Ellisons took control of the company in August and have since submitted multiple proposals to Warner Bros. that would add another storied Hollywood studio and greater scale in streaming to their portfolio.
However, the Warner Bros. board remains unmoved, expecting Paramount to improve the financial terms of the offer.
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