Warner Bros. Discovery Rejects $108.4B Paramount Bid

Warner Bros. Discovery's board of directors unanimously rejected a revised $108.4 billion acquisition offer from Paramount Skydance on Wednesday, affirming its commitment to a previously agreed merger with Netflix valued at $82.7 billion. The decision, outlined in a letter to shareholders, prioritizes the Netflix deal's lower risks and greater certainty over Paramount's all-cash proposal, which the board deemed inferior despite recent amendments.

The Netflix agreement, announced on December 5, 2025, involves the streaming service acquiring Warner Bros.' film and television studios, as well as the HBO Max platform, for $23.25 in cash per share plus Netflix common stock targeted at $4.50 per share based on a collar mechanism. Shareholders would also retain ownership in a spinoff entity called Discovery Global, encompassing WBD's global entertainment, news, and sports assets, including linear networks like CNN, TNT, and TBS. This structure, the board stated, offers substantial value with potential for future growth and avoids additional financial burdens on the company.

In contrast, Paramount Skydance's amended tender offer, submitted on December 22, 2025, proposed $30 per share in...