Warner Bros to Reject Paramount Bid, Back Netflix

Warner Bros. Discovery’s board is widely expected to advise shareholders to reject Paramount Skydance’s $108.4 billion hostile takeover bid and instead support an earlier acquisition proposal from Netflix, according to sources familiar with the matter. The potential decision could be announced as early as Wednesday, reflecting the board’s view that Netflix’s cash-and-stock offer for Warner Bros.’ studio and streaming assets offers a more strategic path forward in an increasingly competitive media landscape.

Paramount’s offer, led by CEO David Ellison, came with an all-cash $30-per-share price tag and was pitched as offering a clearer regulatory path, partly financed by major banks and equity backers. However, Jared Kushner’s Affinity Partners recently withdrew its financial support for the Paramount bid, adding uncertainty to the funding for the takeover attempt and potentially weakening its appeal to Warner’s board and investors.

The ongoing battle for Warner Bros. assets is viewed as a defining moment in the streaming wars, with iconic properties, ranging from classic films and TV series to HBO and HBO Max, at the centre of the dispute. A deal with Netflix could significantly boost its content library and competitive position against rivals such as YouTube and Disney. However, regulatory scrutiny remains a significant hurdle for any combination of major media companies. 

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That said, Netflix’s readership has made it clear they are highly interested in acquiring the company. Industry observers are closely tracking developments in the deal and whether Paramount will revise its bid to keep pace with Netflix’s offer.