WBD Board Again Rejects Paramount Bid

Warner Bros. Discovery's board has again unanimously rejected Paramount Skydance's revised $30-per-share all-cash hostile takeover bid, valued at approximately $108 billion, calling it "inadequate" and overly risky while reaffirming support for its existing merger agreement with Netflix.

The rejection marks the latest escalation in a high-stakes bidding war for control of Warner Bros. Discovery (WBD), owner of HBO, Warner Bros. studios, and franchises like Harry Potter. 

Paramount, led by CEO David Ellison and backed by his father, Oracle co-founder Larry Ellison, launched the hostile tender offer in December 2025 after WBD selected Netflix's lower-valued deal (around $83 billion for studios and streaming assets, excluding cable networks). Paramount's revised offer, amended on December 22, included a personal financial guarantee from Larry Ellison and addressed some prior concerns, but WBD's board argued it still poses significant financing risks, operational restrictions, and would create the "largest LBO in history" with excessive debt.

WBD emphasized that Netflix's cash-and-stock offer provides greater certainty, flexibility (including proceeding with a planned spinoff of cable assets into Discovery Global), and a $5.8 billion breakup fee if regulators block it. The board urged shareholders to reject Paramount's tender, which remains open and could succeed if enough investors tender shares directly.

Background includes WBD's 2025 auction process, where Netflix outbid initial offers from Paramount and others. Paramount went hostile to bypass the board, arguing its all-cash bid for the entire company offers superior value and easier regulatory approval. Analysts note Paramount may need to raise its bid further or pursue other tactics, while Netflix has matching rights. The outcome hinges on shareholder response and regulatory scrutiny amid industry consolidation pressures.