Warner Bros. Discovery (WBD) will advise its shareholders to reject a $108.4 billion takeover bid from Paramount Skydance as soon as Wednesday, according to multiple reports.
The recommendation, detailed by the Financial Times, is based on several concerns, including uncertainties over how the massive deal would be financed.
This comes as a key financial backer of Paramount’s bid, Affinity Partners—founded by Jared Kushner—has reportedly withdrawn its support, citing the intense competitive landscape.
The potential merger faces significant hurdles. Paramount has argued its offer is “superior” to a separate $72 billion deal WBD struck with Netflix earlier this month for its film and streaming businesses. WBD declined to comment on the reports when contacted by the BBC.
Warner Bros. Discovery initiated a formal sale process in October after receiving “multiple” expressions of interest, including from Paramount Skydance.
The impending shareholder guidance sets the stage for a pivotal rejection of one of the largest proposed media mergers in recent history.
By James Kisoo
