Warner Bros Discovery Rejects Paramount’s $108 Billion Bid
Warner Bros Discovery (WBD) has taken a decisive stance in one of Hollywood’s most high-profile corporate battles, formally urging shareholders to reject Paramount’s $108.4 billion hostile takeover bid. In a strongly worded statement, the board unanimously declared the offer inadequate and excessively risky, reaffirming its commitment to the company’s existing agreement with Netflix.
In its December 17 announcement, the board accused Paramount of “consistently misleading” investors regarding financing commitments and criticized the bid for failing to address key concerns raised during months of negotiations. The move significantly escalates an already heated takeover fight, forcing Paramount to either sweeten its offer or appeal directly to shareholders ahead of its January 8 deadline.
Netflix Deal Seen as the Safer Choice
Despite Paramount’s higher all-cash bid of $30 per share, Warner Bros Discovery’s board concluded that Netflix’s $82.7 billion agreement offers “superior, more certain value.” Announced on December 5, the Netflix deal includes $23.25 in cash and approximately $4.50 in Netflix stock per share, valuing the transaction at $27.75 per share.
While numerically lower, the board emphasized that the Netflix structure significantly reduces execution and financing risks. Board Chair Samuel A. Di Piazza Jr. stated, “Following a careful evaluation of Paramount’s tender offer, the Board concluded that the offer’s value is inadequate and imposes substantial risks and costs on our shareholders.”
Under the Netflix agreement, Warner Bros’ film and television studios, HBO, and HBO Max are included, while cable networks such as CNN will be spun off into a separate entity, Discovery Global. Paramount’s proposal, by contrast, aimed to acquire the entire company, including the news network.
Financing Blow for Paramount
Paramount’s position weakened further when Affinity Partners—the private equity firm owned by Jared Kushner, President Donald Trump’s son-in-law—withdrew its financial backing on December 16. The exit removed what some analysts saw as a potential advantage in navigating regulatory scrutiny.
Trump had recently criticized CNN’s leadership and suggested the network “should be sold,” comments that had underscored the political sensitivity surrounding the deal. With Affinity Partners out, Paramount’s financing now depends on the Ellison family, RedBird Capital, and roughly $24 billion from Middle Eastern sovereign wealth funds, including Saudi Arabia’s Public Investment Fund, the Qatar Investment Authority, and Abu Dhabi’s Mubadala.
Next Stop: Shareholder Vote
Netflix executives welcomed the board’s recommendation. Co-CEO Ted Sarandos described it as “the best outcome for consumers, creators, stockholders, and the broader entertainment industry.” Warner Bros Discovery CEO David Zaslav is expected to oversee a shareholder vote on the Netflix deal in the spring or early summer of 2026.
As the deadline approaches, the standoff underscores a defining moment for the future of one of the world’s largest media conglomerates—and for the balance of power in the global entertainment industry.
