Warner Bros Set to Turn Down Paramount’s $108B Hostile Bid

Key Highlights

• Warner Bros Discovery set to reject Paramount Skydance’s amended $108.4 billion hostile bid, despite billionaire Larry Ellison’s backing.
• Netflix’s rival cash‑and‑stock offer remains preferred, driven by clearer financing and fewer execution risks.
• The bidding battle spotlights major strategic and regulatory concerns for Hollywood’s future consolidation.

Warner Bros Discovery is expected to reject an amended $108.4 billion hostile takeover bid from Paramount Skydance, CNBC reported, even after billionaire Larry Ellison personally guaranteed part of the financing in an effort to bolster the offer.

Warner Bros Looks to Say ‘No’ to Paramount’s $108B Offer

The Paramount proposal, which maintained its $30‑per‑share all‑cash valuation, was sweetened with a higher regulatory reverse termination fee and an extended tender deadline. Still, the board and advisers remain unconvinced that the financing is sufficiently secure or strategically compelling.

This expected rejection comes amid broader concerns about valuation, deal certainty, and strategic fit, issues that have dogged Paramount’s bid even after Ellison’s involvement.

Why Warner Bros’ Board Favors Netflix

Warner Bros Discovery’s leadership has been explicitly clear in urging shareholders to reject Paramount’s bid, arguing it poses execution risks and lacks firm financing guarantees, despite Ellison’s support.

In contrast, a rival deal with Netflix valued at about $82.7 billion (cash and stock) is viewed as having clearer financing and fewer uncertainties, even though it carries a $2.8 billion breakup fee if Warner Bros walks away.

Analysts have pointed out that while Paramount’s all‑cash bid might seem attractive on the surface, Netflix’s offer carries a more secure execution profile given its stable balance sheet and binding financing commitments, making it more appealing amid volatile market conditions.

Ellison’s Guarantee and Shareholder Skepticism

Larry Ellison, Oracle’s co‑founder and a key backer of the Paramount Skydance bid, pledged up to $40 billion in personal equity backing to fortify the hostile offer.

However, Warner Bros’ board and key investors remain skeptical whether the guarantee truly mitigates deal risk, with some critics labeling the financing structure as less reliable than it appears, especially compared to Netflix’s commitments.

Even with Ellison’s involvement, some Warner Bros shareholders, including major institutional holders, have called Paramount’s revised bid “not sufficient, indicating that financial credibility and long‑term strategy matter as much as headline deal value.

Strategic & Regulatory Stakes in Hollywood

The showdown between Paramount and Netflix over Warner Bros Discovery isn’t just a corporate finance story; it has broader implications for media consolidation and antitrust scrutiny.

A combined Paramount‑Warner Bros entity would rival Disney in scale, merging two major television and film networks and reshaping competition across streaming, cable, and movie distribution.

At the same time, Warner Bros’ board continues to emphasize that its existing merger plan with Netflix offers superior value and more predictable outcomes for shareholders, positioning it as the preferred option as the company navigates a complex regulatory landscape.

Next Steps for Warner Bros Discovery

With Warner Bros Discovery poised to reject the Paramount Skydance offer, the focus now shifts to regulatory reviews, shareholder approvals, and strategic alignment with Netflix. Analysts say the decision will not only determine the immediate ownership structure but also set the tone for future consolidation in the media and entertainment sector.

The Netflix deal, with its clearer financing and lower execution risks, positions Warner Bros to accelerate streaming growth, optimize content distribution, and expand global reach. Lawmakers and industry regulators will scrutinize the transaction for antitrust concerns, while shareholders weigh the relative stability of Netflix’s cash-and-stock offer against Paramount’s all-cash bid.

In parallel, Warner Bros executives are expected to engage with content partners, advertisers, and international stakeholders to ensure a smooth transition and maintain operational momentum.

Ultimately, the outcome could influence pricing strategies, content investments, and competitive dynamics across Hollywood and streaming markets for years to come.