Warner Bros Discovery Urges Shareholders to Reject Paramount’s $108bn Takeover Bid
Warner Bros Discovery has advised its shareholders to turn down a $108.4bn (£80.75bn) takeover proposal from Paramount Skydance, signalling its preference for a separate deal already agreed with streaming giant Netflix.
In a statement to investors, the company’s board said it had unanimously concluded that the Paramount-backed offer was not in the best interests of shareholders and posed substantial financial and regulatory risks. The board reaffirmed its support for the $72bn agreement announced earlier this month to sell Warner Bros Discovery’s film studio and streaming operations to Netflix.
Paramount Skydance had described its bid as superior, arguing it offered greater value and involved the acquisition of Warner Bros Discovery in its entirety. However, in a detailed regulatory filing, Warner Bros Discovery said the proposal relied on uncertain financing and carried significant execution challenges. The company also dismissed claims that the bid was fully underwritten by the billionaire Ellison family, which backs Paramount Skydance.
Warner Bros Discovery began exploring a sale in October after attracting interest from several potential buyers. On 5 December, it confirmed a deal with Netflix that would see the streaming company acquire its film production arm and HBO streaming service, while leaving Warner Bros Discovery to spin off its traditional television networks, including CNN and TNT, into a separate entity.
The board said the Netflix offer provided clearer funding, lower regulatory risk and stronger long-term value, reflecting the growing influence of streaming platforms in the global entertainment industry.
Netflix welcomed the board’s recommendation, with co-chief executive Ted Sarandos describing the merger agreement as financially sound and in shareholders’ best interests. In a letter to investors, Netflix reiterated that its proposal offered a more straightforward structure and fewer competition concerns.
By contrast, Paramount Skydance is seeking to acquire Warner Bros Discovery in full, a move that would combine rival television networks under one ownership umbrella. Analysts say such a merger could attract close scrutiny from competition regulators in the United States and Europe over concerns about reduced consumer choice.
Paramount could still submit a revised bid, suggesting the contest for control of Warner Bros Discovery may continue. Any successful acquisition would give the buyer access to a vast catalogue of film and television properties, including the Harry Potter franchise, Friends, the MonsterVerse and HBO’s premium content.
Industry observers say the outcome is far from settled. Mike Proulx of research firm Forrester said the struggle for control of Warner Bros Discovery is likely to drag on for months, reflecting the high stakes involved in an industry undergoing rapid consolidation.
The prospect of a merger has drawn criticism from parts of the creative sector. The Writers Guild of America has warned that further consolidation could lead to job losses, lower wages and fewer viewing options for audiences.
