WBD vetos latest Paramount offer; backs Netflix deal
January 7, 2026
Warner Bros Discovery (WBD) has once again advised its shareholders to reject an “inadequate” $108.4 billion (€92.7) takeover bid by Paramount Skydance amid the ongoing duel with Netflix to take control of the media conglomerate.
“The Board unanimously determined that the Paramount’s latest offer remains inferior to our merger agreement with Netflix across multiple key areas,” said Samuel A. Di Piazza Jr, Chair of the WBD Board of Directors, in a press statement. “Paramount’s offer continues to provide insufficient value, including terms such as an extraordinary amount of debt financing that create risks to close and lack of protections for our shareholders if a transaction is not completed. Our binding agreement with Netflix will offer superior value at greater levels of certainty, without the significant risks and costs Paramount’s offer would impose on our shareholders.”
Responding to the latest development, Netflix said it “welcomed” the WBD Board of Directors’ continued commitment to the merger agreement between Netflix and WBD.
“The WBD Board remains fully supportive of and continues to recommend Netflix’s merger agreement, recognising it as the superior proposal that will deliver the greatest value to its stockholders, as well as consumers, creators and the broader entertainment industry,” said Ted Sarandos and Greg Peters, co-CEOs of Netflix. “Netflix and Warner Bros will bring together highly complementary strengths and a shared passion for storytelling. By joining forces, we will offer audiences even more of the series and films they love – at home and in theatres – expand opportunities for creators, and help foster a dynamic, competitive, and thriving entertainment industry.”
Under the terms of the agreement announced on December 5th 2025, Netflix will acquire Warner Bros, including its film and television studios, HBO Max and HBO, in a cash-and-stock transaction valued at $27.75 per WBD share, with a total enterprise value of approximately $82.7 billion. The financing structure is not subject to review by the Committee on Foreign Investment in the United States (CFIUS).
The transaction preserves the planned separation of WBD’s Global Linear Networks business, Discovery Global, which is expected to be completed in Q3 2026.
Netflix confirmed it has submitted its Hart-Scott-Rodino (HSR) filing and is engaging with competition authorities, including the US Department of Justice and European Commission. The streaming giant said it “remains committed to working closely with WBD, regulators, and all stakeholders to ensure a smooth and successful transaction”.