Why Warner Bros rejected Paramount’s bid again: 5 Key reasons explained
Warner Bros Discovery has once again rejected Paramount Skydance’s takeover bid, even after Paramount tried to improve its offer. The board’s message to shareholders was clear and unanimous, the deal still carries too much risk and does not beat the certainty of Warner’s existing agreement with Netflix.
A deal built on borrowed money
Warner Bros’ biggest worry is how Paramount plans to pay for the acquisition. The company says the offer is effectively a leveraged buyout, meaning Paramount would borrow an extraordinary amount of money to fund the deal.
