Warner Bros. Discovery (WBD) has reportedly rejected a takeover offer from Paramount Skydance of around USD 20 per share, as the price was considered too low.

WBD shares last closed at USD 17.10 and are up more than 36 per cent since David Ellison's purchase plans were announced on 11 September. Warner Bros. Discovery, the parent company of HBO/HBO Max, Warner Bros. Entertainment, CNN, TNT, TBS and other brands, has a market capitalisation of around USD 42.3 billion. It is not known whether the offer also included the assumption of the debt of USD 35.6 billion.

Paramount Skydance is also said to have held talks with the investment company Apollo Global Management, which had previously submitted a takeover bid for Paramount Global. Larry Ellison, father of David Ellison, largely financed the purchase of Paramount Global by Skydance.

David Ellison did not officially confirm a bid for WBD at the Bloomberg Screentime conference in Los Angeles, but emphasised the importance of additional production capacity to ensure sustainable growth in the streaming market. He referred to statements by WBD CEO David Zaslav that the industry could benefit from more consolidation.

The offer would involve the full acquisition of Warner Bros. Discovery, which is to be split into two companies next spring: Warner Bros, consisting of studios and streaming platforms, and Discovery Global, including TV channels and Discovery+.

Variety reports in detail.