Warner Bros rejects Paramount’s $108B bid, backs Netflix deal
Warner Bros Discovery has unanimously rejected Paramount Skydance’s revised $108.4 billion bid, calling it a risky leveraged buyout that would saddle the studio with $87 billion in debt, the largest LBO in history. The board reaffirmed its commitment to Netflix’s $82.7 billion offer, citing its clearer financing and lower execution risk.
Paramount’s offer included $40 billion in equity personally guaranteed by billionaire Larry Ellison and $54 billion in debt, but Warner Bros said the plan would strain cash flow, weaken credit, and create high risk for shareholders. Despite amendments, the board said the bid still failed to compensate for potential business damage or guarantee a successful closing, News.Az reports, citing Reuters.
The battle for Warner Bros, home to Harry Potter, Game of Thrones, Friends, and the DC universe, has become Hollywood’s most-watched takeover clash. Netflix’s offer, though smaller in headline value, is seen by analysts as more secure, while Paramount would face regulatory and operational hurdles, including limits on Warner Bros’ planned Discovery Global spin-off.
Warner Bros Chairman Samuel Di Piazza emphasized the company is open to negotiations if Paramount presents a more compelling offer, but the studio remains focused on completing the Netflix deal, which Netflix co-CEOs Ted Sarandos and Greg Peters hailed as delivering the greatest value to shareholders, creators, and consumers.
Shares in Warner Bros dipped slightly, while Netflix edged up and Paramount remained mostly unchanged. The outcome will shape the future of Hollywood consolidation and streaming competition.
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