Warner Bros Discovery has officially rejected a $108.4 billion hostile takeover bid from Paramount Skydance, deepening one of the biggest media industry battles of the year. The board said the offer carries “significant risks” for the company and its shareholders and reaffirmed support for a rival merger agreement with Netflix.
The decision marks a major twist in the fierce competition over the future of Warner Bros vast entertainment assets, including its storied studios, hit TV shows and streaming services.
What Paramount Hostile Bid Was About?
Earlier this month, Paramount Skydance launched an all-cash hostile tender offer directly to Warner Bros shareholders, bypassing the company’s management. The offer valued Warner Bros Discovery at about $108.4 billion, or roughly $30 per share.
Paramount argued its bid offered higher immediate value and claimed it could close faster than Warner’s existing deal with Netflix. The bid also included assets that Netflix’s offer did not fully cover, such as cable networks like CNN and TNT.
Why Warner Bros Said ‘No’?
Warner Bros Discovery’s board refused to recommend the Paramount offer. Executives cited several key concerns:
- Financing doubts: Paramount’s bid was backed partially by a revocable trust that could change or be withdrawn, making the funding uncertain.
- Regulatory risks: A large, complex deal could face lengthy approval hurdles, potentially restricting daily operations.
- Comparison with Netflix deal: Warner bosses believe the company’s merger agreement with Netflix offers more certainty and value for shareholders.
In a letter, the board described Paramount’s offer as “illusory” and lacking secured financing, urging shareholders not to tender their shares.
What Does the Netflix Deal Involve?
Warner Bros Discovery’s existing deal with streaming giant Netflix includes a mix of cash and stock. That agreement would see Netflix acquire Warner’s core studios and streaming assets, while some cable networks could be spun off or managed separately.
The Netflix proposal also comes with a high break-up fee, which suggests strong confidence in closing on time.
Battle for Control of Hollywood Assets
This takeover fight highlights the fierce competition in the global entertainment industry. Warner Bros owns some of Hollywood’s most valuable intellectual property — from classic films to major franchises and hit TV series — making it a prized prize for buyers.
Paramount’s aggressive strategy came after it lost out in an earlier bidding phase to Netflix. The hostile approach aimed to persuade shareholders directly to switch support.
Major Backer Exits Paramount’s Bid
Adding pressure to Paramount’s campaign, one of its key financial backers — Affinity Partners, linked to Jared Kushner — withdrew backing from the deal. This move weakened the financing structure and raised even more questions for Warner’s board.
What Happens Next?
Warner Bros Discovery now expects shareholders to follow the board’s recommendation and reject the Paramount bid. Paramount still has the option to sweeten its offer before a key January 8, 2026 deadline to win support from investors directly.
If shareholders embrace the Netflix deal instead, it could reshape the future of media, streaming and Hollywood competition for years to come.