Warner Bros. Discovery has reportedly rejected a takeover offer from David Ellison’s Paramount Skydance in recent weeks.
Bloomberg reports that Paramount Skydance offered $20 per share, a number that Paramount deemed ‘too low’. Warner Bros. Discovery shares closed at $17.10 per share on Friday.
It’s unclear whether the bid also included the assumption of WBD’s $35.6 billion in total debt. Warner Bros. Discovery’s market cap sits at $42.3 billion.
Ellison’s interest in bidding for WBD emerged last month, just weeks after closing Skydance’s deal to acquire Paramount Global.
The surprise was that the bid was for all of the company, even as WBD plans to split into two separate companies next spring – Warner Bros., which would comprise studios and streaming, and Discovery Global, which would be the TV networks and Discovery+ service.
Ellison previously indicated that Paramount needs more content-producing engines to achieve sustainable growth and that the overall industry needs more consolidation.
