Warner Bros. Discovery has confirmed that they got an unsolicited tender offer from Paramount Skydance that has been changed. The offer is still for $30 per share in cash, which is worth about $108 billion for the whole company. The board plans to carefully review the situation and make a recommendation to shareholders within ten business days. They do not want any immediate action.
To ease the board’s worries, Paramount got Larry Ellison to personally back the deal with $40 billion in equity. This meant that his family trust couldn’t be canceled during the deal, and it also revealed trust assets like 1.16 billion Oracle shares. WBD now has more options for refinancing its debt, and the regulatory reverse termination fee has gone up to $5.8 billion. The offer still requires full ownership of WBD’s Global Networks.
The WBD board unanimously turns down the Paramount bid because it is not good enough. They say it is too risky, too expensive, and not worth as much as the December 4 merger with Netflix for studios, HBO, and streaming assets. Paramount says its offer includes $18 billion more cash, a quicker 12-month closure, easier regulation, and $6 billion in synergies. It also criticizes Netflix’s unclear stock component and job effects.
David Ellison says that the bid will help Hollywood by bringing in more content, theaters, and competition. He promises that there will be more than 30 theatrical films a year, which is more than Netflix’s limited focus. The hostile move, which is backed by investors like Jared Kushner’s Affinity Partners and Middle Eastern funds, goes around WBD’s board and goes straight to shareholders before the January 8, 2026 deadline. WBD talks about its fair process, which is better for Netflix because it is more certain.
