An American flag flies at Warner Bros. Studio in Burbank, California, on September 12, 2025. The Warner Bros. Discovery (WBD) board has unanimously advised shareholders to reject a hostile takeover bid from Paramount Skydance, standing firm in their belief that the offer is “inferior” to a recently announced agreement with Netflix. This deal, valued at $72 billion, encompasses WBD’s studio and streaming business, signaling a strategic move for the company.
WBD board chairman Samuel Di Piazza emphasized the strength of the Netflix agreement during an interview with CNBC’s David Faber on “Squawk Box.” He stated, “We have a signed merger agreement with Netflix; it’s a compelling value, a clear path to closing, and protections for our shareholders if something stops the close, whatever that might be.”
Following the announcement of the Netflix deal, Paramount launched its counteroffer, presenting shareholders with a $30 per share all-cash bid for Warner Bros. Discovery’s complete portfolio, including its television networks. The WBD board promptly advised shareholders to turn down this proposal, highlighting its lack of competitive value.
As part of its efforts to sway WBD’s board, Paramount solidified its backing from billionaire Larry Ellison, whose family trust is linked to Paramount Skydance CEO David Ellison. This backing was a direct response to the concerns raised by WBD’s board about the financial viability of Paramount’s bid. Last year, Paramount amended its offer, indicating that Larry Ellison would not revoke the family trust or transfer its assets during the pending negotiation. Despite these adjustments, Paramount has not increased the monetary aspect of its offer.
In a letter to shareholders, the WBD board criticized Paramount Skydance’s efforts, stating, “PSKY has repeatedly failed to submit the best proposal for WBD shareholders despite clear direction from WBD on both the deficiencies and potential solutions.” They reiterated that the board, management, and advisors engaged extensively with Paramount, offering explicit instructions for improving their proposals. However, they claimed that the bids received continued to exhibit numerous deficiencies that were absent in the Netflix merger agreement.
Paramount first expressed interest in acquiring Warner Bros. Discovery’s assets in September, submitting three takeover offers before WBD initiated a formal sale process inviting other bidders. The uncertainty surrounding this high-stakes negotiation reflects the evolving landscape of the entertainment industry, where partnerships and mergers are becoming increasingly common.
Representatives from Paramount did not respond immediately to requests for comment, leaving industry watchers eager for the next developments in this unfolding story. As WBD stands firm in its commitment to the Netflix deal, the outcome of this competitive tug-of-war may significantly reshape the future of both organizations in an industry constantly seeking innovation and growth.
The dynamic between Warner Bros. Discovery and Paramount Skydance highlights the complexities of corporate acquisitions in the digital age-where strategic alliances may hold more value than aggressive bids, a reality that both shareholders and industry analysts are keen to observe.
Original Source: https://www.cnbc.com/2026/01/07/wbd-rejects-paramount-offer-again-netflix-deal.html
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Publish Date: 2026-01-07 18:01:00
