Warner Bros. Discovery (WBD) Wednesday formally rejected Paramount Skydance Corporation's all-cash $30-per-share hostile tender offer, valued at $108.4 billion.
The board deemed the bid "inadequate" and not a "superior proposal" compared to its existing agreement with Netflix, recommending shareholders reject it due to financing uncertainties, operational restrictions, and higher risks.
The rejection follows Paramount Skydance's December 8 launch of the unsolicited tender offer directly to shareholders, after losing a formal bidding process to Netflix. WBD reaffirmed commitment to Netflix's $82.7 billion deal (approximately $27.75 per share in cash and stock) for its film/TV studios, HBO, and HBO Max streaming service, with linear networks like CNN and TNT to be spun off as Discovery Global.
Key concerns cited by WBD include reliance on a revocable Ellison family trust for financing and limitations on business flexibility during regulatory review.
Recent setbacks for Paramount include Jared Kushner's Affinity Partners withdrawing support and prior backer Tencent stepping away over foreign ownership issues.
Paramount, led by CEO David Ellison and backed by his father Larry Ellison, argues its offer delivers $18 billion more in immediate cash and preserves the company intact.
Background and Next Steps
The saga began after Paramount's merger with Skydance in August 2025. Ellison pursued WBD aggressively, escalating bids from lower levels, but WBD opened a sale process and selected Netflix on December 5.
The tender offer expires January 8, 2026, unless extended. Paramount may raise its bid, pursue shareholders directly, or withdraw. Regulatory hurdles loom for either deal, amid ongoing media consolidation pressures involving iconic assets like DC Comics and HBO content.
The situation remains dynamic, with potential for escalated offers or shareholder influence.