Warner Bros. Discovery rejects Paramount Skydance’s $108.4 billion takeover bid

Warner Bros. Discovery’s board has unanimously rejected Paramount Skydance’s renewed bid to acquire the studio, calling the revised $108.4 billion hostile offer an excessively risky leveraged buyout that shareholders should steer clear of, according to reports by global news agencies.

In a letter addressed to shareholders on Wednesday, the board said Paramount’s proposal relies on an “extraordinary level of debt financing,” significantly increasing execution risk. The board reiterated its support for Netflix’s $82.7 billion agreement to acquire Warner Bros.’ film and television studio and select assets.

The decision followed a board vote on Tuesday to turn down Paramount’s $30-per-share all-cash offer. Directors cautioned that the proposed financing structure would leave the combined entity with nearly $87 billion in debt upon completion, potentially making it the largest leveraged buyout ever attempted.

In its communication, the board stated that the revised proposal “continues to be inadequate,” citing limited value creation, uncertainty around Paramount Skydance’s ability to close the transaction, and the disproportionate risks that would fall on Warner Bros. Discovery shareholders if the deal were to collapse.

This assessment stands despite Paramount’s latest attempt to strengthen its offer by proposing $40 billion in equity—personally guaranteed by Oracle co-founder Larry Ellison, father of Paramount CEO David Ellison—alongside $54 billion in debt financing. Paramount currently has a market capitalisation of roughly $14 billion.

By rejecting the bid, Warner Bros. Discovery remains on course to proceed with its agreement with Netflix. Paramount had revised its offer on December 22 to address earlier concerns, including the absence of a personal guarantee from Larry Ellison.

Reacting to the development, Netflix co-CEOs Ted Sarandos and Greg Peters welcomed the board’s decision, saying it affirms Netflix’s proposal as the stronger option—one they believe delivers superior value to shareholders while also benefiting consumers, creators, and the wider entertainment ecosystem.