Reports from multiple sources indicate that Warner Bros Discovery’s board of directors plans to advise shareholders to reject Paramount Skydance’s $108.4 billion hostile takeover offer and instead support the company’s existing agreement with Netflix. The recommendation could be made public as soon as Wednesday.
The decision reflects the board’s assessment that Netflix’s earlier proposal offers greater financing certainty and a clearer path forward than Paramount’s all-cash bid, despite Paramount’s higher headline price.
Background: A Heated Bidding Contest
The contest began earlier this month when Netflix reached an agreement to acquire Warner Bros Discovery’s studio and streaming businesses, including HBO, HBO Max and much of its content library, in a $72 billion cash-and-stock deal. That proposal positioned Netflix as the frontrunner in the ongoing consolidation of Hollywood content assets.
In response, Paramount Skydance launched a hostile takeover bid worth approximately $108.4 billion, offering $30 per share in cash to acquire the entire company, including its cable networks. Paramount argued its bid provided more upfront value for shareholders and would face fewer regulatory hurdles, a position disputed by Warner’s board.
Warner’s Board Favors Netflix Offer
According to sources familiar with the situation, the Warner Bros Discovery board believes Paramount’s financing structure introduces uncertainty and may pose greater risk to closing. Paramount’s bid had been backed by a consortium that included the Ellison family, RedBird Capital and several sovereign wealth funds, with significant debt commitments from major banks.
A complicating factor for Paramount’s bid emerged earlier this week when Affinity Partners, the private equity firm of Jared Kushner, withdrew its support for the offer. While Affinity was not a major financial contributor, its departure removed a high-profile backer and raised questions about the overall credibility of the financing lineup.
Strategic Considerations Beyond Price
Warner Bros Discovery’s board appears to be weighing factors beyond pure price per share. Netflix’s proposal, although lower on a per-share basis, includes a mix of cash and stock that may provide greater certainty of funding and a smoother regulatory review, particularly as global competition authorities scrutinise large media consolidations.
Paramount has argued that its all-cash offer is superior and that its combination with Warner would create a vertically integrated media powerhouse. Paramount’s executives have criticised Warner’s management for not engaging more fully with their proposal.
What This Means for the Streaming Wars
If Warner Bros Discovery’s board formally recommends rejection of the Paramount offer, it would represent a major victory for Netflix and a defining moment in the streaming industry’s consolidation. Netflix’s acquisition of one of Hollywood’s most valuable content libraries would significantly enhance its competitive position against legacy media rivals and other streamers.
However, the situation remains fluid. Paramount could still appeal directly to shareholders or attempt to improve its offer, and regulators in the United States and abroad may weigh in as the proposed transactions progress.
For now, the likely board recommendation signals that Warner Bros Discovery sees Netflix’s bid as the most strategically sound path forward in a high-stakes battle for control of one of the world’s richest collections of film and television content.
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