Warner Bros. Discovery has rejected Paramount's $108.4 billion takeover bid, calling it "illusory" and saying the offer would require an "extraordinary amount of debt financing." The company is instead sticking with its deal to sell its streaming and movie studios businesses to Netflix for $82.7 billion.
According to Warner Bros., the Paramount bid lacks a clear path to completion, as it can be terminated or amended by the acquiring company at any time. In contrast, the Netflix deal provides more flexibility for Warner Bros. to operate in the meantime.
Warner Bros. has also criticized Paramount's offer, saying it is supported only by Larry Ellison's personal guarantee and would require an unprecedented amount of debt financing. The company notes that the offer cannot be completed before its current expiration date.
The board of directors at Warner Bros. Discovery has unanimously voted to reject the Paramount bid and urges shareholders to reject it as well. Despite this, some investors may still be open to negotiations with Paramount, according to a letter from Pentwater Capital Management, a hedge-fund manager that is one of Warner's top shareholders.
Paramount, which recently completed an $8 billion merger with Skydance, had submitted its bid for a hostile takeover days after the Netflix/Warner Bros. deal was announced. The company amended its offer on December 22 to address objections from Warner Bros., but the board ultimately rejected it.
Warner Bros. Discovery said in a letter to shareholders that it prefers the deal with Netflix because of its market capitalization, investment grade balance sheet, and estimated free cash flow for 2026.
According to Warner Bros., the Paramount bid lacks a clear path to completion, as it can be terminated or amended by the acquiring company at any time. In contrast, the Netflix deal provides more flexibility for Warner Bros. to operate in the meantime.
Warner Bros. has also criticized Paramount's offer, saying it is supported only by Larry Ellison's personal guarantee and would require an unprecedented amount of debt financing. The company notes that the offer cannot be completed before its current expiration date.
The board of directors at Warner Bros. Discovery has unanimously voted to reject the Paramount bid and urges shareholders to reject it as well. Despite this, some investors may still be open to negotiations with Paramount, according to a letter from Pentwater Capital Management, a hedge-fund manager that is one of Warner's top shareholders.
Paramount, which recently completed an $8 billion merger with Skydance, had submitted its bid for a hostile takeover days after the Netflix/Warner Bros. deal was announced. The company amended its offer on December 22 to address objections from Warner Bros., but the board ultimately rejected it.
Warner Bros. Discovery said in a letter to shareholders that it prefers the deal with Netflix because of its market capitalization, investment grade balance sheet, and estimated free cash flow for 2026.
But Warner Bros is like "no thanks" and choosing the safer Netflix route instead. It's all about being cautious with debt financing, I guess. The Paramount deal seemed pretty sketchy from the start, though - only Larry Ellison's personal guarantee? 
That's some high-risk stuff right there! Anyway, I wonder if this rejection will affect the future of Warner Bros or its studios at all... maybe we'll see more movies and shows on Netflix instead? 
the thing is, their deal with netflix is looking super attractive right now - it's all about stability and growth, you know? i think paramount just threw a ton of money at the wall hoping something sticks, but warner bros isn't having it 
it's actually kinda refreshing to see them stand firm on this one 
. The Paramount bid was always a bit sketchy to me, I mean who is behind it? Larry Ellison's personal guarantee is a major red flag 
. And now it seems like the debt financing required by the deal would be insane 
. I think this decision was a smart move for Warner Bros., especially considering their current financial situation 
. The Netflix deal might not be worth $108.4 billion but it's definitely a safer bet 
. I think the only reason Warner Bros. rejected the bid is because they're scared of losing control and having to adapt to Paramount's vision 
. I'm just not convinced that Paramount could pull off a takeover without some major hiccups.
. $108.4 billion is crazy talk! Like, what were they thinking? 