Warner Bros. is reportedly set to reject Paramount's offer and continue with the Netflix deal

Warner Bros. Discovery is reported to formally reject Paramount Skydance’s $108.4 billion hostile takeover bid, advising shareholders to turn down the $30-per-share all-cash offer. Despite Paramount's higher price tag, the board cited significant concerns regarding financing reliability and regulatory hurdles, choosing instead to prioritize its standing agreement with Netflix.

The Netflix deal, valued at $72 billion, focuses on acquiring Warner Bros.’ film and television studios, HBO, and HBO Max. Under this agreement, the streaming giant will pay $27.75 per share while spinning off WBD's cable networks, like CNN, into a separate entity. Netflix aims to operate the historic studio independently, maintaining traditional theatrical releases.

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Warner Bros. Discovery recommends rejection of Paramount’s $108 billion bid to secure Netflix merger

The decision by Warner Bros. Discovery to turn away from Paramount's massive offer comes down to the safety and strength of the deal. While Paramount offered more money per share, the board felt the source of that money was too risky.

Paramount’s bid relies heavily on financing commitments connected to the Ellison family, which the board said raised concerns about certainty and enforceability. The studio did not say the funding would definitely be withdrawn, but noted the structure carried more risk than Netflix’s proposal. In contrast, Netflix is a publicly traded company with a market value of over $400 billion and a strong credit profile, making its offer appear more secure.

Another major issue is timing. A merger with Paramount would likely face lengthy regulatory reviews, potentially delaying completion for an extended period. During that time, the board said Paramount’s proposal would limit Warner Bros. Discovery’s flexibility to manage its operations and debt.

They worried the company could be left in prolonged uncertainty, restricting major strategic decisions. Sticking with Netflix offers a clearer path forward and greater operational stability.

The historic partnership with Netflix was first revealed to the public on December 5, 2025. The announcement sent shockwaves through Hollywood because it meant that some of the most famous stories in history would now live under the Netflix banner.

If completed, the deal would place the studio's vast film and television library under Netflix’s control, including globally recognized franchises such as Harry Potter, Game of Thrones, and other Warner Bros. properties, subject to final transaction terms and approvals.

The leadership at Netflix views this acquisition as a vital move to secure the company’s future in an increasingly crowded market. Ted Sarandos, the co-chief executive of the streaming giant stated:

“The combination of Netflix and Warner Bros creates a better Netflix for the long run. In a world where people have so many choices, more choices than ever on how to spend their time, we can’t stand still.”

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Stay tuned for more updates.

Edited by Suchita Patnaha