Warner Bros. Discovery decided to reject the acquisition offer submitted by Paramount Skydance, considering it to be riskier than the agreement currently in force with Netflix. Although the revised proposal includes greater financial backing, the company concluded that its structure relies on a high level of Paramount’s indebtedness, which introduces uncertainty regarding the feasibility and effective closing of the transaction.
Accordingly, Warner Bros. Discovery’s Board of Directors recommended that its shareholders dismiss Paramount’s proposal and maintain the commitment with Netflix. According to the company, this agreement offers higher levels of certainty, financial stability, and a more favorable balance of risks for the company.
This episode highlights the growing competition in the entertainment industry for control over strategic assets and high-value content catalogs. Although Paramount maintains that its proposal is more attractive from an economic standpoint, Warner Bros. Discovery reaffirms that its preference for Netflix is based on criteria of financial strength, lower risk exposure, and the creation of sustainable long-term value.
