Warner Bros. Discovery (WBD) has formally rejected a $108 billion hostile takeover bid from David Ellison’s Paramount Skydance, describing the offer as “illusory” and accusing Paramount of misleading shareholders over the strength of its financing.
In a letter addressed to shareholders, WBD’s board of directors said the proposal was inferior to its existing agreement with Netflix and lacked the financial certainty Paramount had publicly claimed. According to the board, Paramount repeatedly suggested the bid was fully backed by the Ellison family, a claim WBD strongly disputed.
“It does not, and never has,” the board stated, referring to the alleged financing backstop for the Paramount Skydance offer.
The board emphasized that it intends to honour its initial agreement to sell key assets to Netflix, arguing that the streaming giant’s proposal offers greater certainty and value for shareholders. Netflix’s offer values WBD’s Hollywood studios and streaming business at $27.75 per share and, according to the board, is supported by enforceable commitments without the need for additional equity financing.
WBD contrasted this with Paramount’s tender offer, which it described as speculative and dependent on uncertain funding arrangements. The board said the Paramount bid exposes shareholders to execution risks that are absent from the Netflix deal, including reliance on external equity financing and less robust debt commitments.
Netflix welcomed the decision. In a statement, co-CEO Ted Sarandos said the WBD board had reaffirmed that Netflix’s merger agreement is superior and aligned with shareholder interests. He added that the company remains committed to completing the transaction as agreed.
Despite the rejection, the takeover battle may not be over. According to Variety, Paramount and Ellison’s financial backers—including his father, Oracle founder Larry Ellison—are reviewing WBD’s response and could consider increasing their offer.
The standoff highlights the intensifying consolidation pressures within the global media and entertainment industry, as legacy studios and streaming platforms compete for scale, content libraries, and long-term profitability in an increasingly crowded market.
