Warner Bros. Discovery (WBD) has formally rejected a $108 billion hostile takeover bid from David Ellison’s Paramount Skydance, branding the proposal “illusory” and accusing Paramount of misleading shareholders about the strength and certainty of its financing.
In a letter to shareholders, WBD’s board of directors said the Paramount Skydance offer was inferior to the company’s existing agreement with Netflix and lacked the financial certainty that Paramount had publicly asserted. The board challenged repeated claims that the bid was fully backed by the Ellison family, disputing the existence of a reliable financing backstop.
“It does not, and never has,” the board stated, referring to the alleged funding support behind the Paramount Skydance proposal.
The board reiterated its intention to proceed with its previously announced agreement to sell key assets to Netflix, arguing that the streaming giant’s offer delivers greater value and certainty for shareholders. Netflix’s proposal values WBD’s Hollywood studios and streaming business at $27.75 per share and, according to the board, is supported by enforceable commitments that do not require additional equity financing.
By contrast, WBD described Paramount’s tender offer as speculative, highlighting what it said were material execution risks tied to uncertain funding arrangements. The board warned that the Paramount bid relies on external equity financing and less secure debt commitments, risks it said are absent from the Netflix deal.
Netflix welcomed the board’s decision. In a statement, co-chief executive Ted Sarandos said the WBD board had reaffirmed that Netflix’s merger agreement represents the superior option and is aligned with shareholder interests. He added that Netflix remains committed to completing the transaction on the agreed terms.
The rejection may not mark the end of the takeover battle. According to Variety, Paramount and Ellison’s financial backers, including his father, Oracle founder Larry Ellison, are reviewing WBD’s response and could consider raising their offer.
The standoff underscores the growing consolidation pressures reshaping the global media and entertainment industry, as traditional studios and streaming platforms vie for scale, premium content libraries and sustainable profitability in an increasingly competitive market.
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