Warner Bros. Discovery's board is set to reject Paramount Skydance's amended hostile takeover bid following a meeting next week, sources say. The decision prioritizes WBD's merger with Netflix amid delays, costs, regulatory hurdles, and investor skepticism despite sweeteners like Larry Ellison's guarantee.
Warner Bros. Discovery (WBD) is expected to reject Paramount Skydance's latest amended hostile bid after its board meets next week, according to sources familiar with the matter. This follows WBD's December 23 confirmation that it had received the sixth such offer—at $30 per share in cash—and would review it with advisors.
The board views the bid as disruptive to its prior merger agreement with Netflix, announced earlier this month, which values WBD's studio and streaming assets at $27.75 per share in cash and stock. The Netflix deal would spin off remaining linear TV assets into a standalone Discovery Global by Q3 2026. Switching deals risks a $2.8 billion breakup fee to Netflix and delays.
While the amended offer matches Netflix's $5.8 billion breakup fee and adds a $40.4 billion personal guarantee from Oracle co-founder Larry Ellison (father of Paramount Skydance CEO David Ellison), it retains the $30 base price. Total equity value: $77.9 billion (enterprise: $108.4 billion with debt). Paramount urged shareholders to tender by January 21.
Key concerns include regulatory scrutiny: President Donald Trump, who may weigh in, has lauded Netflix co-CEO Ted Sarandos but criticized Paramount-owned CBS and opposes WBD keeping CNN post-merger. Some investors call for a higher bid. Analysts call the contest tight, with Paramount possibly prevailing.
WBD shares have soared over 170% in 2025 amid the bidding war, lifting market cap to $71.8 billion. No final decision is confirmed; both companies declined comment.
