Warner Bros. Discovery Rejects Second Paramount Bid — Zaslav Holds the Line

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Warner Bros. Discovery has turned down a second offer from David Ellison’s Skydance, after previously rejecting their first one. This latest bid was reportedly $24 per share, an increase from the initial offer of $20.

Warner Bros. Discovery has announced it’s considering options for the future, including potential offers from other companies. This comes as they still plan to separate parts of the business in 2026.

David Zaslav, the company’s CEO, seems determined to increase the company’s worth before considering selling it, and so far, he’s achieving that goal.

Second Bid Shot Down as Stock Price Surges

According to the New York Post, and later confirmed by Deadline, Paramount Skydance recently made another, increased bid for Warner Bros. Discovery. However, like their previous offer, it was rejected. Neither Warner Bros. Discovery nor the team at Skydance have publicly commented on the situation.

The news of this latest dismissal arrived as Warner Bros. Discovery admitted it was fielding offers from several potential buyers interested in acquiring the company – or parts of it, like the Warner Bros. studio and HBO Max –.

The recent announcement, along with rumors of mergers and acquisitions, has caused Warner Bros. Discovery’s stock price to reach a three-year high, briefly exceeding $20.33 per share – a price higher than the initial offer made by Ellison.

Zaslav Playing for More — and It’s Working

The recent rejection of the offer seems to confirm initial expectations: David Zaslav isn’t looking for a fast sale. His plan appears to be to increase Warner Bros. Discovery’s value before selling it, and that strategy is currently working. By turning down an offer of $24 per share, WBD’s leadership now likely believes the company is worth considerably more – probably between $28 and $32 or even higher per share – depending on how the market performs and how many companies are competing to buy it.

This move also allows Zaslav to consider stronger offers or potentially sell parts of the company, like Warner Bros., after the planned separation from Discovery Global in 2026.

Paramount Still Favorite, But Faces Pressure

Even though their offers have been turned down twice, Wall Street still believes Paramount Skydance is the most likely buyer. This is largely due to funding from Oracle, provided by Larry Ellison, and the progress the team made after the Paramount Global merger in August. However, with each rejection, Paramount is feeling more pressure to either increase their offer, become a publicly traded company, or find a private equity firm to help finance the deal.

Several other companies, like Comcast, Amazon, and Netflix, are reportedly keeping a close eye on the situation. However, each faces challenges: Comcast could run into regulatory hurdles, Amazon has overlapping business interests and potential antitrust concerns, and Netflix has publicly said it’s not interested in traditional media companies, though they haven’t dismissed the possibility of buying Warner Bros. if it separates from its parent company.

The Game Is Still Wide Open

Zaslav is holding the cards, and so far, he’s dictating the pace.

After facing two unsuccessful offers, seeing his company’s stock price soar, and attracting attention from several potential buyers, he’s achieved his goal: a competitive situation with multiple bidders vying for the purchase.

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2025-10-22 04:31