Deal or No Deal: Warner Bros. Discovery Rejects Paramount’s Hostile Bid to Stick with Netflix

Warner Bros. Discovery has officially urged its shareholders to vote against Paramount Skydance’s unsolicited $108 billion takeover offer. In a decisive letter sent this Wednesday, the board labeled the hostile bid as financially unstable and “illusory,” citing a lack of guaranteed funding from the Ellison family.

The rejection serves as a cold shower for Paramount, whose position was further weakened after Jared Kushner’s Affinity Partners abruptly pulled its financial backing earlier this week. Without that support, Warner executives argue that Paramount’s all-cash proposal carries too much risk compared to the existing agreement with Netflix.

Under the terms of the approved $82.7 billion deal, Netflix will acquire Warner’s legendary film and television studios along with the crown jewel, HBO. This means hit series like Game of Thrones, Succession, and the entire Harry Potter franchise are set to migrate to the streaming giant’s platform.

Warner Bros. Discovery executives emphasized that the Netflix merger offers a clearer path forward, free from the regulatory and credit rating pitfalls haunting Paramount. While Paramount had offered $30 per share for the entire company, including CNN and TNT, the board believes splitting the linear networks into a separate entity is a safer bet for long-term value.

This move effectively cements a massive shift in the entertainment landscape, consolidating two of the biggest content libraries under one digital roof. With the board standing firm, the path is now clear for HBO Max to be integrated into Netflix by next year.

Do you think Warner Bros. made the right choice by snubbing Paramount for Netflix? Share your thoughts in the comments.