Warner Bros. Discovery Rejects Paramount's Hostile Bid, Endorses Netflix Deal

Warner Bros. Discovery's board has officially rejected Paramount Skydance's $108.4 billion hostile takeover bid, citing inadequate financing assurances. In a letter to shareholders, the board stated that Paramount had "consistently misled" them regarding the offer's backing by the Ellison family, led by Oracle CEO Larry Ellison.

The board emphasized that Paramount's proposal posed "numerous, significant risks" and was "inferior" to the existing agreement with Netflix. Netflix's $72 billion cash-and-stock offer for Warner Bros.' film and television studios, its library, and the HBO Max streaming service is a binding agreement that requires no equity financing and has robust debt commitments.

This decision follows Netflix's announcement on December 5, 2025, of its intent to acquire Warner Bros. Discovery's studio and streaming divisions. The deal, valued at approximately $82.7 billion including debt, is expected to close after the planned separation of Warner Bros. Discovery's Global Networks division into a new publicly traded company, Discovery Global, anticipated in the third quarter of 2026.

Paramount Skydance had launched its hostile bid on December 8, 2025, offering $30 per share in an all-cash deal for the entire company. The bid was positioned as a superior alternative to Netflix's offer, with Paramount arguing that its proposal would face fewer regulatory hurdles.

In response to Warner Bros. Discovery's rejection, Paramount Skydance has yet to issue a statement. The competition for Warner Bros. Discovery underscores the strategic value of its extensive content library and production capabilities in the evolving media landscape.