The rumored sale of Warner Bros. Discovery to the newly formed Paramount/Skydance media conglomerate has yet to materialize. Bloomberg reported that WBD CEO David Zaslav announced in a town hall meeting with 100 senior staff that the company’s Board of Directors has turned down three separate offers by Paramount/Skydance over the past two weeks, including the latest offer at $23.50/share, more than triple the price that WBD shares were trading at before reports began to surface of a possible sale of Warner Bros. Discovery. For now, Zaslav has convinced WBD’s Board to sit tight, while additional interest is considered, including overtures from Apple and Amazon.
These latest developments indicate that Paramount/Skydance’s path to acquiring WBD might not be as straightforward as had originally been anticipated. The attitude has soured among many in Hollywood towards the potential roll-up of Warner Bros. Discover under the new Paramount/Skydance, out of fear that the loss of a traditional big six studio would result in massive job losses and a reduction in the net overall output of content.
Paramount/Skydance has attempted to push back against this narrative, saying that they would keep the Warner Bros. film and television studios intact. But other bidders are sensing an opportunity, with Netflix and Comcast also said to be taking steps to prepare their own offers for WBD.
