Warner Bros Chooses Netflix Over $108 Billion Paramount Bid

Wed Dec 17 2025 21:00:03 GMT+0200 (Eastern European Standard Time)

In a bold move, Warner Bros Discovery has turned down a $108.4 billion takeover bid from Paramount Skydance, preferring a $72 billion deal with Netflix, citing long-term value and financing stability.

Warner Bros Discovery has advised its shareholders to reject a substantial takeover offer from Paramount Skydance, valuing $108.4 billion. Instead, the company has opted for a merger with Netflix worth $72 billion, which it believes better serves shareholder interests and poses less regulatory risk. Despite the high stakes, Paramount Skydance, backed by the influential Ellison family, may yet come back with another bid.

Warner Bros Discovery has told its shareholders to reject Paramount Skydance's $108.4 billion (£80.75 billion) takeover bid.

Paramount had claimed its offer was 'superior' to a $72 billion deal that Warner Bros struck with Netflix for its film and streaming businesses.

In a dramatic plot twist in the story of who will take control of one of Hollywood's oldest and most famous movie studios, Warner Bros' board 'unanimously' recommended rejecting the offer and asserted the Netflix deal is in the firm's best interests.

The media giant put itself up for sale in October after receiving 'multiple' expressions of interest from potential buyers, which included approaches from Paramount Skydance.

On December 5, Warner Bros Discovery announced it had agreed to sell its film and streaming businesses to Netflix.

In a lengthy legal filing, Warner Bros Discovery's board indicated that the higher offer from Paramount poses numerous and significant risks and strongly rejected the notion that the Ellison family - one of America's wealthiest families - is financially supporting the bid.

Paramount's bid is indeed backed by the Ellison family, which has close ties to the president.

Reflecting the shifting power dynamics in the entertainment industry, the Warner Bros board states that the Netflix offer is well financed and holds better long-term value for shareholders.

Netflix welcomed the recommendation from Warner Bros. Ted Sarandos, Netflix's co-CEO, described the merger agreement as 'superior' and 'in the best interest of stockholders'.

In a letter to Warner Bros shareholders, Netflix reiterated that its bid for Warner Bros features a clearer funding structure and less regulatory risk.

However, Paramount might come back with another offer, suggesting that the takeover saga gripping Hollywood continues.

Just a week after Netflix's acquisition announcement for Warner Bros, Paramount Skydance launched a new offer for the company, encompassing its television networks. A new ownership of Warner Bros would gain a significant advantage in the competitive streaming marketplace, acquiring a vast library of films and TV shows, including Harry Potter, the MonsterVerse, Friends, and the HBO Max streaming service.

There has been criticism from segments of the film industry regarding the proposed merger with a rival. The Writers Guild of America's East and West branches have urged for the merger to be blocked, arguing it would result in lower wages and job losses. They have also highlighted that viewer content volume would diminish.