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Warner Bros. Discovery’s board has formally rejected the $108 billion takeover bid from Paramount Skydance, the company announced. WBD said it remains committed to its $82.7 billion deal with Netflix, which would close some time next year, pending regulatory approval.
“[The board] has unanimously determined that the tender offer launched by Paramount Skydance on December 8, 2025 is not in the best interests of WBD and its shareholders and does not meet the criteria of a “Superior Proposal” under the terms of WBD’s merger agreement with Netflix announced on December 5, 2025,” the studio said in the press release.
Paramount’s offer was funded in part by sovereign wealth funds from Saudi Arabia, Qatar and Abu Dhabi, so it could have triggered a national security review by the US government. However, Paramount said that even if those entities dropped out, the company’s owners (the Ellisons) would “backstop the full amount of the bid.”
However, the board said that Paramount “has consistently misled WBD shareholders that its proposed transaction has a ‘full backstop’ from the Ellison family. It does not, and never has,” adding that “the terms of the Netflix merger are superior.” WBD explained that Paramount is relying on an “opaque revocable trust” for said backstop which is “no replacement for a secured commitment by a controlling shareholder.” WBD’s board also noted that Paramount expects to achieve $9 billion in cost synergies from the merger, and that “would make Hollywood weaker, not stronger.”
In a statement, Netflix co-CEO Ted Sarandos said that “the Warner Bros. Discovery board reinforced that Netflix’s merger agreement is superior and that our acquisition is in the best interest of stockholders. This was a competitive process that delivered the best outcome for consumers, creators, stockholders and the broader entertainment industry.”
Paramount has yet to comment, but the company has previously said that its $30 per share offer is a better deal, due to the all-cash nature (compared to 84 percent cash for Netflix) and fact that it would have a clearer path to regulatory approval due to the Ellison’s supposedly tight relationship with President Trump.
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