Warner Bros. Tells Investors to Reject Paramount’s Buyout Bid

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Warner Bros. Discovery is advising its shareholders to reject a buyout offer from Paramount Skydance, believing that an offer from Netflix is a more secure and beneficial option for the company’s future. In a letter to investors, Warner Bros. Discovery called the Paramount Skydance offer “unsolicited, inferior, and illusory” and recommended that shareholders decline it.

Last week, Paramount made an offer to buy Warner, paying $30 per share – a bit more than the $27.75 per share Netflix had offered. Paramount is asking Warner’s owners to ignore Netflix’s deal and consider their offer instead.

Paramount has made an offer to buy all of Warner Bros., including channels like CNN and Discovery. Netflix is also interested in buying Warner Bros., but their offer wouldn’t include those cable channels. If Netflix were to make a deal, it would only happen after Warner Bros. has already spun off its cable businesses.

I’ve been following the situation closely, and it turns out Paramount actually made six offers to Warner before publicly announcing their bid on December 5th. Even though Warner’s management isn’t keen on the deal, it looks like we shareholders still have the power to decide if we want to accept Paramount’s offer.

Some experts are concerned that combining Netflix and HBO Max could make Netflix too powerful in the streaming world, especially since Paramount+ is a much smaller competitor. However, Netflix leaders Greg Peters and Ted Sarandos argue that the merger will actually benefit the entertainment industry as a whole.

The different offers to buy a major Hollywood studio have sparked worries about the industry’s future, particularly for film and television production. Warner Bros. argued that Netflix’s bid is the safer option, as it doesn’t involve investment from foreign governments, pledged stock, or personal loans. They also expressed concerns about Paramount’s financial health, stating its offer is full of “risks and uncertainties.”

Political considerations might also influence the situation. President Trump has publicly discussed the deal, pointing out possible issues for the market.

Donald Trump has a connection to Larry Ellison, the father of Paramount’s CEO, David Ellison. The Ellison family trust, along with other investors – including wealth funds controlled by the governments of Saudi Arabia, Abu Dhabi, and Qatar – are financially supporting Paramount’s current efforts. Jared Kushner, Trump’s son-in-law and leader of Affinity Partners, had originally committed support for Paramount but has since pulled back.

Warner Bros. has signaled its preference for Netflix’s offer through recent communications. Ultimately, though, it’s the shareholders who will make the final decision, considering the pros and cons of each option.

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2025-12-17 17:44