Warner Bros advises against sale to Paramount

The battle for control of Warner Bros. Discovery is entering an increasingly complex phase and, for now at least, it seems to be going badly for Paramount. According to the Financial Times, the group led by David Zaslav is reportedly ready to advise its shareholders to reject the hostile offer of 108 billion dollars put forward by Paramount, equivalent to 30 dollars per share.

This stance is reportedly based on several critical issues. Firstly, the operation is judged to be less advantageous than the proposal presented by Netflix earlier this month, valued at approximately 83 billion dollars. The latter would allow Warner Bros. Discovery to continue with its plan to spin off its cable networks, which include brands such as CNN, Discovery, and Turner, without strategic upheavals.

The decision now rests with the shareholders

The recommendation to shareholders is not yet final and awaits formal approval from the board of directors, which may take longer. Meanwhile, WBD shares are trading around 29 dollars, a sign that the market is betting on a possible relaunch, especially from Paramount.

Further complicating the scenario was the withdrawal of Affinity Partners, Jared Kushner's fund, which initially supported Paramount. The group justified its withdrawal by a substantial change in the investment conditions, while reiterating the strategic validity of the operation.

Netflix's offer therefore remains on the table, which involves the acquisition of Warner Bros.'s main assets – from major intellectual properties such as Harry Potter, DC Comics, and The Lord of the Rings to HBO and HBO Max – but leaving out Discovery. A move that could profoundly reshape the balance of the film and audiovisual industry.