Warner Bros. has declined a $108 billion offer from Paramount
Warner Bros. Discovery Confirms Strategic Partnership with Netflix, Rejects Paramount Skydance Offer
Warner Bros. Discovery's executive team has officially declined a substantial acquisition proposal from Paramount Skydance, choosing instead to move forward with their earlier plan to sell key assets to streaming powerhouse Netflix.
The bid from Paramount Skydance was reportedly valued at around $108 billion. However, the Warner Bros. Discovery board determined that pursuing a different growth strategy would be more advantageous and sustainable for the company’s future.
Reasons Behind Warner Bros.' Decision to Partner with Netflix
In a detailed message to shareholders, Warner Bros. Discovery’s board highlighted that the agreement terms with Netflix are distinctly “superior” when compared to Paramount’s proposal. The statement pointed out that Paramount Skydance’s offer presented an “insufficient valuation” along with considerable financial and operational risks.
Paramount Skydance and its financiers, including tech magnate Larry Ellison—father of company leader David Ellison—are now reviewing the formal rejection and evaluating whether to enhance their offer. To date, no updates or improved proposals have been made public by Paramount.
Details of the Netflix Acquisition Plan
Under the current strategy slated for the third quarter of 2026, Warner Bros. Discovery will initiate a corporate restructuring. This will lead to the creation of a new entity, Discovery Global, which will mainly encompass the company’s television network assets.
Subsequently, Netflix will acquire Warner Bros. Studios, along with the HBO channel and the HBO Max streaming platform. The transaction is valued at $27.75 per share. This strategic move aims to bolster Netflix’s content portfolio while granting Warner Bros. Discovery enhanced financial stability and access to Netflix’s expansive digital subscriber base.
Netflix’s Response and Future Outlook
On Wednesday, Netflix issued an official statement expressing enthusiasm about Warner Bros. Discovery’s decision and reaffirmed its commitment to completing the deal based on the previously agreed terms.
With this development, Warner Bros. Discovery has firmly prioritized a collaboration with the streaming leader, effectively sidelining Paramount Skydance’s ambitious acquisition attempt.
