Warner Bros. Discovery Rejects Paramount’s Latest Takeover Bid

Summary:

Warner Bros. Discovery rejects Paramount’s hostile bid, citing financial risk and uncertainty.
Paramount’s $108.4 billion offer requires $54 billion in new debt, deemed too risky by WBD.
Larry Ellison’s $40 billion pledge fails to sway board in favor of Netflix merger for long-term value.

Warner Bros. Discovery has again said no.

The media giant on Wednesday advised shareholders to reject a renewed takeover bid from Paramount Skydance, doubling down on its previously announced merger agreement with Netflix. The board said Paramount’s revised proposal remains “inferior” due to what it described as excessive financial risk and structural uncertainty.

The latest hostile bid from Paramount values Warner Bros. Discovery at $108.4 billion, topping the $82.7 billion deal WBD agreed to with Netflix last month. But according to the company, the Paramount offer would require roughly $54 billion in new debt, making it the largest leveraged buyout ever attempted in the media sector.

RM @RepRaskin raises concerns about how massive merger deals — like the one involving Netflix, Warner Bros., and Paramount — are being evaluated under Trump. pic.twitter.com/N5XUqDSJaD

— House Judiciary Dems (@HouseJudiciary) January 7, 2026

In a statement, Warner Bros. Discovery said the proposal from Paramount and CEO David Ellison relies on debt and equity financing equal to nearly seven times Paramount’s current market capitalization. The company said that level of leverage presents “significant risks, costs, and uncertainties” compared with the Netflix transaction.

Even a reported pledge from billionaire Larry Ellison, father of David Ellison, to contribute more than $40 billion in equity financing failed to change the board’s view.

This marks the second formal rejection of a Paramount bid by Warner Bros. Discovery, which reiterated that the Netflix merger offers greater certainty and long-term value for shareholders.

The decision keeps Warner Bros. Discovery on track to pursue regulatory approval and closing steps tied to the Netflix deal, while effectively shutting the door on Paramount’s latest attempt to disrupt the transaction.