Warner Bros. has declined a $108 billion offer from Paramount

Warner Bros. Discovery Confirms Strategic Partnership with Netflix, Rejects Paramount Skydance Acquisition Bid

Warner Bros. Discovery’s executive team has officially decided to turn down a significant acquisition proposal from Paramount Skydance, opting instead to move forward with a previously announced plan to sell key assets to streaming powerhouse Netflix.

The Paramount Skydance offer was reportedly valued around $108 billion. Nevertheless, Warner Bros. Discovery’s board of directors determined that pursuing an alternative business strategy aligned better with the company’s long-term growth and stability objectives.

Reasons Behind Warner Bros. Discovery’s Preference for Netflix

In a detailed communication with shareholders, the board highlighted that the deal terms presented by Netflix are “superior” compared to those from Paramount. The board described the Paramount Skydance proposal as involving an “inadequate valuation” coupled with considerable financial and operational risks that could jeopardize the company’s future.

Paramount Skydance and its financial backers, including tech mogul Larry Ellison (father of Paramount Skydance CEO David Ellison), are now reviewing the formal rejection. It remains uncertain whether they will revise their offer, as no updated proposals have been made public so far.

Details of the Warner Bros. Discovery and Netflix Agreement

The current plan, set to take effect by the third quarter of 2026, involves a corporate restructuring that will split Warner Bros. Discovery into distinct entities. This will result in the creation of Discovery Global, which will primarily manage television network operations.

Subsequently, Netflix will acquire Warner Bros. Studios, the HBO network, and the HBO Max streaming platform. The transaction is valued at $27.75 per share, marking a strategic alliance poised to bolster Netflix’s content offerings while providing Warner Bros. with enhanced financial backing and access to a massive digital audience.

Netflix’s Response and Future Outlook

Netflix promptly issued a statement expressing enthusiasm over Warner Bros. Discovery’s decision and reaffirming its commitment to completing the acquisition under the agreed-upon terms.

This move clearly establishes Warner Bros. Discovery’s strategic focus on partnering with the streaming leader, effectively sidelining Paramount Skydance’s high-profile bid without management endorsement.