Warner Bros. rejects Paramount bid, favors $83B Netflix deal
Warner Bros. Discovery (WBD) shareholders have been urged to reject Paramount's updated takeover bid, with the board declaring it inferior to a competing $83 billion offer from Netflix. The December 5 Netflix deal would merge the film studio and HBO Max streaming service into the streaming giant. Three days later, Paramount launched a rival $108.4 billion all-cash tender offer, later amended in mid-December to include a personal financing guarantee from tech billionaire Larry Ellison, whose son David controls Paramount Skydance.
The WBD board unanimously rejected the Paramount offer, citing 'insufficient value' and an 'extraordinary amount of debt financing that create risks to close.' Unlike the Netflix deal, Paramount's bid would absorb major cable channels including CNN, TNT, TBS, and Discovery, adding them to Paramount's existing assets like CBS and MTV. The bidding war has drawn White House attention, with President Trump stating he will be 'involved' in merger decisions, and is expected to face major regulatory scrutiny.