(Reuters) – Warner Bros Discovery (WBD.O) could announce as early as Wednesday that it will recommend shareholders vote against Paramount Skydance’s (PSKY.O) $108.4 billion takeover offer, according to sources familiar with the matter.
Such a decision would represent the latest development in the high-stakes battle for Warner Bros’ assets, which include its iconic film and TV studio, a vast content library spanning classics like Casablanca and Citizen Kane to modern hits such as Harry Potter, Friends, HBO, and the HBO Max streaming service.
A Warner Bros Discovery spokesperson declined to comment on the potential board decision.
The winner of the contest would gain a significant edge in the streaming wars by securing access to one of Hollywood’s most valuable content libraries.
Earlier this month, Netflix (NFLX.O) won approval with a $27 per share cash-and-stock bid for Warner Bros’ non-cable assets. Paramount CEO David Ellison then directly approached Warner Bros’ shareholders with a $30 per share all-cash bid for the entire company.
Paramount has argued in regulatory filings that its bid is superior to Netflix’s and offers a clearer path to regulatory approval.
The offer is backed by $41 billion in new equity from the Ellison family and RedBird Capital, and $54 billion in debt commitments from Bank of America, Citi, and Apollo.
Bloomberg reported that Jared Kushner’s Affinity Partners, one of Paramount’s financing partners, is exiting the deal.
Paramount and Affinity Partners did not immediately respond to Reuters’ requests for comment.
