Third Paramount bid for Warner Bros Discovery rebuffed, say reports

Warner Bros Discovery (WBD) has rejected three buyout bids from Paramount over recent weeks, according to several US media reports. 

The latest bid by Paramount was reported by various outlets at either $23.50 or just under $24 a share, with 80% to be paid in cash. WBD shares closed at $20.53 on Wednesday (October 22), up from under $19 at the start of the week. 

According to a report in the New York Times, Paramount also offered to make WBD chief executive David Zaslav co-chief executive and co-chairman of the combined company, alongside new Paramount chief executive David Ellison. 

The reports come a day after WBD effectively put itself up for sale, announcing in a statement that it has “initiated a review of strategic alternatives to maximize shareholder value”. The statement said WBD has had “unsolicited interest…from multiple parties” for both the entire company and the Warner Bros studio alone. The company previously announced plans to separate the studio operation from Discovery Global. 

Potential buyers other than Paramount are thought to include Amazon and Comcast. 

The New York Times also reported that it has reviewed a letter from Ellison to the WBD board saying, in part: “We are confident that we are the best partner for WBD, with a combination of our two companies creating a scaled Hollywood champion to the benefit of both our companies’ shareholders, consumers, and the entertainment industry at large.” 

A takeover of WBD by another studio owner with a major streaming service would likely face scrutiny from US regulatory authorities. In the letter reported by the Times Ellison writes: “Other potential acquirers of WBD – today or in the future – would need to overcome significant (perhaps insurmountable) hurdles given their dominant market positions.” 

Neither WBD nor Paramount has commented on the reports.

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