Warner Bros. Discovery has officially rejected a hostile $108.4 billion takeover offer from Paramount Skydance, recommending that shareholders instead back Netflix’s earlier acquisition offer, which the board says offers more certain value.
Warner Bros. Discovery (WBD) has formally rejected Paramount Skydance’s $108.4 billion hostile takeover bid, declaring that the competing offer from Netflix is superior and better aligned with shareholder interests. The company’s board and leadership have urged investors to reject the Paramount proposal and stay committed to the Netflix acquisition, which was previously agreed upon earlier this month.
What the Decision Means
The Paramount Skydance bid — valued at $30 per share in cash and totaling approximately $108.4 billion — was launched as a hostile rival bid just days after Netflix announced its plan to acquire WBD’s film and streaming business for about $82.7 billion in enterprise value. Paramount argued its all‑cash offer provided higher short‑term value and a clearer path to completion.
However, the board of Warner Bros. Discovery unanimously concluded that Paramount’s proposal was not in the best interests of the company’s shareholders. WBD cited concerns over financing certainty, regulatory risk, and the long‑term stability of the combined business under Paramount’s plan. The board instead reiterated its support for the deal with Netflix, describing it as offering more certain and stable value for investors.
Why Netflix Still Leads the Deal
Netflix’s offer, originally agreed upon on December 5, 2025, would see the streaming giant acquire WBD’s studios, HBO Max streaming business, and other content divisions. The board views this merger as a strategic move that positions Netflix to better compete in the evolving entertainment landscape and unlock long‑term value for shareholders.
The Paramount bid included all of WBD — including cable networks such as CNN, Discovery Channel, and TNT — but Warner Bros. Discovery labelled it inferior due to concerns around its financing structure and increased regulatory complexity.
Shareholder Recommendation and Next Steps
WBD has advised shareholders to reject Paramount’s tender offer and instead support the Netflix merger when voting on the competing proposals. The board’s recommendation followed a careful review of both bids and reaffirmed that the Netflix offer presents less risk and more long‑term benefit, even if its initial valuation was lower on paper.
The outcome of this bidding war could reshape the media and entertainment industry. Shareholders will ultimately decide which path to follow, with some investors, such as Harris Associates, indicating they may consider revised offers from Paramount should the company improve its bid terms.
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