Bloomberg reported Saturday that WBD had rebuffed Paramount Skydance's initial takeover approach in recent weeks, deeming it "too low."
The offer was around $20 per share, which would value WBD at approximately $50 billion (a premium over its then-$17.10 closing price but below the September highs and analyst expectations for a blockbuster deal). WBD shares dipped slightly post-report, closing Friday at $17.10 (market cap $42.3 billion), while Paramount's held at $17 ($18.6 billion valuation).
CNBC's David Faber had noted the week prior (October 3) that talks were ongoing but stalled over price, with Paramount considering going public to pressure WBD's board or shareholders. Neither company has officially commented, keeping the matter private.
Paramount Skydance, under Ellison, has several paths forward:
- Sweeten the deal: Boost the offer, possibly with more Ellison family equity or PE support from Apollo.
- Hostile approach: Bypass WBD's board and appeal directly to shareholders, leveraging the initial premium.
- Walk away: Focus on integrating its recent Paramount merger amid regulatory scrutiny (e.g., the Trump administration's approval included commitments to viewpoint diversity and ending certain DEI programs at CBS).