Warner Bros. Discovery has again rebuffed a takeover bid from Paramount Skydance, rejecting an offer valued at about $77.9 billion and reaffirming its support for a proposed merger with Netflix, company leaders said Wednesday.
In a letter to shareholders, Warner’s board of directors said Paramount’s hostile bid — which seeks to buy the entire entertainment giant — does not provide adequate value and carries significant risks. Paramount has attempted to sweeten its offer with guarantees and higher payout terms, but Warner’s leadership argued that its structure, heavily reliant on debt financing, could hamper the company’s long-term prospects.
Instead, Warner urged investors to back its existing agreement with Netflix, under which the streaming giant would acquire Warner’s studio and streaming business, including major assets such as HBO Max, for roughly $72 billion. The Netflix deal would separate Warner’s news and cable networks, like CNN, into a standalone company.
“Paramount’s offer continues to provide insufficient value, including terms such as an extraordinary amount of debt financing that create risks to close and lack of protections for our shareholders if a transaction is not completed,” Warner’s board chair said, adding that the Netflix agreement offers superior value with greater certainty.
Paramount — owned by Skydance and backed in part by a personal equity guarantee from Oracle founder Larry Ellison — has not immediately responded to Warner’s rejection. Shareholders currently have until Jan. 21 to decide whether to tender their shares to Paramount’s offer, which remains open despite the company’s stance.
Both proposed deals face intense regulatory scrutiny. A combined Warner-Netflix entity or a Paramount acquisition of Warner could draw antitrust reviews by U.S. and international authorities, given the size and influence of the companies involved in the evolving entertainment landscape.
The high-profile bidding battle highlights the escalating consolidation and competition in Hollywood, especially as traditional media companies and streaming giants jockey for scale, valuable content libraries and subscriber growth in a rapidly changing industry.