Warner Bros to decline Paramount's $108bn takeover bid

Warner Bros Discovery will be informing shareholders to reject the offer made by Paramount Skydance, which is more than the $72 billion deal that Warner Bros struck with Netflix.

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Reports indicate that despite Paramount's $108.4 offer, Warner Bros will be telling its shareholders to reject the offer and go with Netflix, as Warner has multiple concerns with Paramount's bid, including how it would be financed, according to a report from the Financial Times.

For those who don't know, Warner Bros Discovery put itself up for sale in October, which garnered many expressions of interest, including a bid from Paramount. However, on December 5, Warner Bros Discovery announced it had agreed to sell its film and streaming businesses to Netflix, which prompted a new offer from Paramount for the whole company and its television networks.

The deal has attracted quite a lot of scrutiny, with many believing that under the ownership of Netflix, Warner content will no longer be shown in cinemas. Additionally, US and EU regulatory agencies are sure to have their eyes closely on the deal. As for Warner content still being released in theaters, Netflix boss Ted Sarandos said in an interview Tuesday in Paris that, "We're going to continue to operate Warner Bros. studios independently and release the movies traditionally in cinema."