Warner Bros Discovery recommends shareholders to reject the $108.4 billion offer from Paramount, considering it poorly founded.

Warner Bros Discovery (WBD) is in the midst of intense competition in the entertainment industry, after Paramount launched a hostile offer of $108.4 billion. WBD's management intends to recommend that shareholders reject this offer, considering it poorly founded and with uncertainties regarding financing. The Paramount offer is backed by the Ellison family trust, but investors are concerned about the lack of a direct guarantee from Larry Ellison.

On the other hand, Netflix has proposed a takeover valued at $72 billion, and WBD investors have expressed high confidence in this offer. Jared Kushner has withdrawn from the Paramount competition, facilitating dialogue with WBD and eliminating criticisms related to his political connections. Paramount claims that its offer has a better chance of being approved by regulatory authorities, but U.S. President Donald Trump has expressed reservations about the Netflix-WBD deal, mentioning Netflix's large market share.

Analyzing Netflix's strategy, it is believed that it aims to strengthen control over major franchises, such as 'Game of Thrones' and 'Harry Potter', which would bolster its position against rivals. The deal will be closely monitored by regulatory authorities in Europe and the U.S., considering the impact on the streaming market.