WBD Rejects Paramount's Acquisition Attempt

Lack of Comprehensive Support from Ellisons

The leadership at Warner Bros. Discovery has decisively turned down Paramount Skydance's $108 billion bid to take over the company. Warner Bros. Discovery affirmed its allegiance to an $82.7 billion agreement with Netflix, anticipating it will come to fruition next year if regulatory bodies green light the deal.

According to the board's official decision, the offer from Paramount Skydance, put forth on December 8, 2025, was not aligned with the interests of Warner Bros. Discovery and its shareholders. It failed to reach the threshold of a 'Superior Proposal' as per the current merger terms with Netflix entered on December 5, 2025.

The proposal by Paramount included financial backing partly from the sovereign funds of Saudi Arabia, Qatar, and Abu Dhabi. This association might have invited an evaluation under national security protocols by the U.S. government. Regardless, Paramount proclaimed that should these investors withdraw, the Ellison family would ensure the bid's funding.

The board countered, noting that Paramount has repeatedly misled Warner Bros. Discovery's shareholders regarding the Ellison family's alleged comprehensive support. Such assurances were never genuine. The Netflix deal offers more advantages. Paramount leans on a 'vague revocable trust' for financing, falling short of a guaranteed commitment from a major shareholder, according to Warner Bros. Discovery.

Furthermore, Warner Bros. Discovery's board highlighted that Paramount's touted $9 billion cost savings could potentially debilitate rather than fortify Hollywood.

Netflix's Perspective

Ted Sarandos, one of Netflix's co-CEOs, remarked on the matter, explaining that Warner Bros. Discovery's board validated the superiority of Netflix's merger proposal. He described it as a competitive bidding process that resulted in the most favorable outcome for audiences, creators, shareholders, and the broader entertainment sector.

Although Paramount has not yet shared any remarks on Warner Bros. Discovery's refusal, the company previously promoted its offer of $30 per share as preferable. The argument centered around the full cash nature of the proposal versus Netflix's 84% cash offer and claimed a more straightforward regulatory approval due to the reportedly close ties of the Ellison family with former President Trump.