Warner Bros. Discovery says Paramount’s hostile $77.9 billion bid is not in the best interests of shareholders and urges support for Netflix’s roughly $72 billion deal instead.

Regulatory and political factors, including potential U.S. government involvement, are expected to influence the merger process.

WBD notes Paramount’s offer relies on heavy debt financing, raising questions about the deal’s feasibility and closing risk.

There is a real possibility that no deal materializes, as negotiations and integration could derail what’s on the table.

Industry observers warn that reduced film output and fewer choices at theaters could result from consolidation or insufficient challenges to it.

The potential outcome could shape broader media-consolidation debates and consumer impact, with lawmakers like Senator Elizabeth Warren weighing in on concerns.

Employees are being urged to stay focused and not be swayed by external noise, with appreciation for their professionalism.

Paramount representatives did not immediately comment on the latest developments.

Industry groups express concern about consolidation, warning of potential job losses and reduced theatrical competition if the bids advance.

Theaters warn that a large Netflix-backed bid could dominate domestic box office, signaling substantial consolidation and less competition.

There is a broader political angle to the takeover, with discussions around influence over media assets and connections to political figures.

WBD cautions that Paramount’s leveraged structure could extend a closing window and risk material adverse effects, complicating strategic plans.