Warner Bros Turns Down $108 Billion Paramount Bid, Chooses Netflix Deal Instead

Wed Dec 17 2025 21:44:15 GMT+0200 (Eastern European Standard Time)

Warner Bros Discovery has opted for a $72 billion agreement with Netflix over Paramount's $108 billion takeover offer, citing better long-term value and reduced risks.

In a surprising turn of events, Warner Bros Discovery has advised its shareholders to reject a massive $108.4 billion takeover bid from Paramount Skydance, favoring instead a $72 billion agreement with Netflix. The board unanimously concluded that the Netflix deal presents a more advantageous future for the company, considering the potential risks associated with the Paramount offer. This decision highlights the shifting power dynamics in the entertainment industry as rivalry between streaming platforms intensifies.

Warner Bros Discovery has told its shareholders to reject Paramount Skydance's $108.4bn (£80.75bn) takeover bid.

Paramount had described its offer as 'superior' to a $72bn deal that Warner Bros struck with Netflix for its film and streaming businesses.

However, in a dramatic plot twist in the story of who will take control of one of Hollywood's oldest and most famous movie studios, Warner Bros’ board 'unanimously' recommended rejecting the offer, believing the deal with Netflix was in the firm's best interests.

The media giant announced its intent to seek a buyer in October after receiving 'multiple' expressions of interest from potential buyers, including Paramount Skydance.

On 5 December, Warner Bros Discovery confirmed its agreement to sell its film and streaming businesses to Netflix.

In a lengthy legal filing, Warner Bros Discovery's board explained that the higher offer from Paramount presents numerous and significant risks, and they strongly rejected the notion that the Ellison family—a wealthy backer of the Paramount bid—would provide financial support for the acquisition.

Reflecting on the current power dynamics within the entertainment sector, the Warner Bros board asserted that the offer from Netflix is better financed, promising more long-term value to shareholders.

Reiterating its position, Netflix welcomed the Warner Bros board’s recommendation, with co-CEO Ted Sarandos declaring the merger agreement as 'superior' and 'in the best interest of stockholders'.

In a letter to Warner Bros shareholders, Netflix stressed that its bid features a clear funding structure and less regulatory risk compared to Paramount’s proposal.

While Paramount's aggressive bid has been turned down for now, it remains a possibility that they may come back with a new offer, leaving the future of the takeover saga open.

The week following Netflix’s announcement of its agreement to acquire Warner Bros, Paramount Skydance launched another offer for the entire company, which includes its television networks.

Should a takeover of Warner Bros proceed, it is expected to encounter rigorous scrutiny from competition regulators in both the US and Europe.

A new owner would gain access to a significant edge in the highly competitive streaming market, obtaining a substantial library of films and television shows, including franchises like Harry Potter and Friends.

Some industry professionals have criticized the potential merger of Warner Bros with a rival, with the Writers Guild of America's East and West branches advocating against the merger, arguing it could lead to reduced wages and job losses, as well as a decrease in the volume of content for viewers.