Economy|MediaWarner Bros again rejects latest hostile bid from ParamountWBD board says the offer ‘remains inadequate’ as some investors push back.
The board of Warner Bros Discovery (WBD) has unanimously rejected Paramount Skydance's revised $108.4 billion bid to acquire the studio. The board highlighted the bid's reliance on substantial debt financing, which increases the risk for investors.
The board of Warner Bros Discovery (WBD) has unanimously rejected Paramount Skydance's revised $108.4 billion bid to acquire the studio. The board highlighted the bid's reliance on substantial debt financing, which increases the risk for investors.
According to a letter addressed to shareholders on Wed, Dec 17, 2025, the board reaffirmed its commitment to a pending $82.7 billion deal with Netflix for the acquisition of the film and television studio and other assets. Paramount's proposal involves $87 billion in debt, making it potentially the largest leveraged buyout in history. The Warner Bros board emphasized the inadequacy of Paramount’s offer due to insufficient value and uncertainties surrounding its completion.
Technical and Financial Considerations
Paramount's financing plan involves $40 billion in equity guaranteed by Oracle co-founder Larry Ellison, and $54 billion in debt. This structure is expected to weaken its credit rating and strain cash flow. In contrast, Netflix, with a $400 billion market value and investment-grade credit rating, has offered $27.75 per share in cash and stock.
Warner Bros board noted that terminating the Netflix deal would result in approximately $4.7 billion in additional costs, including a $2.8 billion termination fee to Netflix and $1.5 billion in lender fees.
The board of Warner Bros Discovery (WBD) has unanimously rejected Paramount Skydance's revised $108.4 billion bid to acquire the studio.
The acquisition battle between Paramount and Netflix for Warner Bros involves not only the film and television studios but also its extensive content library, which includes popular franchises like Harry Potter and Game of Thrones. Warner Bros' board has expressed concerns that Paramount's offer does not adequately compensate for potential operational restrictions and market positioning impacts.
Both acquisition proposals are subject to regulatory approval. The valuation of Warner Bros' planned Discovery Global spin-off, including cable networks like CNN and the Discovery+ streaming service, remains a significant issue, with analysts and Paramount providing differing valuations.
On Wall Street, Warner Bros Discovery shares increased by 0.3 percent following the announcement, while Netflix shares also rose by 0.3 percent. In contrast, Paramount's shares declined by 0.1 percent.
Based on reporting by Al Jazeera.
