Warner Bros Rejects Paramount's Takeover Offer

Warner Bros. Discovery’s (WBD) board of directors rejected a Paramount Skydance bid worth $108.4 billion to buy the entire company. The board stated that the proposal was inferior to rival Netflix’s offer.

In a letter to shareholders, WBD’s board stated that it has unanimously determined Paramount’s bid is not in its best interest and does not meet the criteria of a superior proposal under the terms of its merger agreement with Netflix, announced in early December. WBD chair Samuel Di Piazza Jr added that it had concluded the offer’s value was inadequate, with significant risks and costs imposed on shareholders.

“This offer once again fails to address key concerns that we have consistently communicated to Paramount throughout our extensive engagement and review of their six previous proposals,” he said. The board reiterated its support of the Netflix combination. Netflix agreed to a deal worth $72 billion with WBD for its TV, film studios, and streaming assets. However, Paramount launched a hostile bid shortly after, worth $108.4 billion for the entire company, arguing that Netflix’s deal offers inferior and uncertain value.

In its letter, WBD continued to state that Paramount had misled its shareholders into believing that its $30 per share was fully guaranteed. It is not known when shareholders will vote on the Paramount bid. Netflix co-CEO Ted Sarandos welcomed the WBD board’s decision, stating that it reinforced that its merger agreement is superior.