Warner Bros. Discovery on Wednesday harshly rejected Paramount’s $108 billion all-stock offer to acquire the company, calling it “illusory” and criticizing the Ellison family-led bid for failing to meet key criteria on financing and transparency.
According to The Wrap, the scathing response effectively ends the immediate pursuit by Paramount (controlled by billionaire Larry Ellison and his son David), setting Hollywood up for months of uncertainty, strained relationships, and shifting alliances.
Paramount’s leadership remains committed to the deal and is betting that Warner shareholders will tender their shares directly to the Ellisons, bypassing the board’s recommendation. Paramount insiders argue Netflix’s competing bid has no chance of regulatory approval, claiming a combined Netflix-HBO streaming powerhouse would dominate the market and draw intense scrutiny from the FTC and bipartisan members of Congress.
“There is not a conceivable world in which Netflix closes this deal,” said a person close to Paramount’s deal team.
Paramount’s only realistic path forward is to raise its offer, a move that could reignite a bidding war with Netflix. Analysts increasingly see Paramount’s chances as slim.
“We doubt Paramount is ready to abandon its WBD bid,” said Rich Greenfield of LightShed Partners.
“However, with Netflix still having plenty of dry powder and a clear determination to close the transaction, it appears hard to comprehend how Paramount can win.”
In response, Paramount CEO David Ellison defended the bid, emphasizing it includes more cash than Netflix’s offer and expressing “high confidence” it would clear regulatory hurdles—despite reports of waning political support from former President Trump and Jared Kushner’s withdrawal from the deal. Ellison maintained the original $30-per-share terms.