Warner Bros. Discovery Board Rejects $108 Billion Paramount Skydance Takeover Bid as “Illusory”

The board of Warner Bros. Discovery has formally rejected a massive takeover bid from Paramount. The hostile offer from David Ellison’s Paramount Skydance was valued at $108 billion. WBD’s board called the proposal “illusory” in a public letter. The decision was announced on December 17, 2025.

This move strongly reaffirms the company’s commitment to its existing merger agreement with Netflix. The board told shareholders the Paramount bid was financially misleading and inferior. According to Reuters, the board accused Paramount of misrepresenting its funding.

Board Cites Misleading Financing, Backs Superior Netflix Deal

The rejection letter was direct. It stated Paramount “has consistently misled WBD shareholders.” The board claims Paramount’s promise of a “full backstop” from the Ellison family was false. It does not exist and never has, the letter clarifies.

The board’s analysis favored the binding Netflix agreement. Netflix’s offer is for $27.75 per share for WBD’s studio and streaming assets. The board noted this deal has enforceable commitments and robust debt financing. It requires no complex equity financing, making it more secure.

For Warner Bros. Discovery, the path forward is now clearer. The company can proceed with Netflix without distraction. For Paramount and David Ellison, the rejection is a major setback. They must now decide whether to raise their offer or walk away.

Industry Impact and Next Steps for Paramount

Netflix immediately welcomed the board’s decision. Co-CEO Ted Sarandos issued a supportive statement. He said the board reinforced that the Netflix merger is superior for stockholders. This public backing strengthens Netflix’s position as the rightful buyer.

The broader media landscape is watching closely. A successful Netflix-WBD merger would create a content and streaming powerhouse. It would reshape competitive dynamics against Disney and other rivals. A failed Paramount bid leaves its own strategic ambitions in question.

According to industry reports from Variety, Paramount and its backers will review the rejection. They must decide if a higher offer is feasible. Larry Ellison’s financial support remains a key factor. The coming weeks will determine if this corporate battle is truly over.

The Warner Bros. Discovery board’s decisive rejection underscores the high stakes in media consolidation. The clear preference for the Netflix deal sets a new course for the company’s future. This major corporate takeover bid has been firmly turned away.

Thought you’d like to know

Q1: Why did Warner Bros. Discovery reject the Paramount bid?

The board called the $108 billion offer “illusory.” They stated Paramount misled shareholders about having full financial backing from the Ellison family. The board found the existing Netflix agreement to be superior and more secure.

Q2: What is the status of the Netflix deal now?

The Netflix merger agreement is moving forward. The WBD board confirmed it is a binding contract with enforceable commitments. Netflix’s leadership has publicly welcomed the board’s decision to reject Paramount.

Q3: Can Paramount come back with a new offer?

Yes, that is possible. Reports from Variety indicate Paramount and David Ellison’s team will review the rejection. They will determine if submitting a higher, revised offer is a viable next step.

Q4: What part of Warner Bros. Discovery is Netflix buying?

Netflix’s $27.75-per-share offer is for Warner Bros.’ Hollywood studios and its streaming business. This includes iconic film franchises and the Max streaming platform’s operations.

Q5: Who is funding the Paramount Skydance bid?

The bid is led by David Ellison of Skydance Media. His father, Oracle co-founder and tech billionaire Larry Ellison, is a key financial backer. The exact structure of their financing has been questioned by the WBD board.