The battle for Warner Bros Discovery has moved into the boardroom, with Netflix and Skydance fighting for control. Netflix is offering an all-cash deal to support the current board and finalize its $83 billion acquisition, while Skydance is attempting to replace the directors to force a hostile takeover.
Paramount Skydance, backed by the Ellison family, has offered $108.4 billion for WBD. The board has rejected the bid as “inadequate” due to its debt financing. Skydance is now nominating a slate of new directors to override the board’s decision, creating a corporate crisis.
Netflix’s all-cash offer is a strategic defense. By providing immediate liquidity to shareholders, Netflix hopes to secure their support and keep the current board in place. The deal includes WBD’s studio and streaming assets, but excludes the linear networks like CNN and the Cartoon Network.
The corporate warfare is taking place under the shadow of regulatory scrutiny. Politicians fear that a Netflix-WBD merger would create a streaming monopoly. The backlash suggests that the winner of the boardroom battle will still face a tough fight in Washington.
Investors appear to favor the current board’s strategy. WBD shares rose 1.6% on the news, indicating that the market prefers the stability of the Netflix deal over the disruption of the Skydance takeover. The outcome will determine who controls the future of WBD.