Warner Bros. Discovery’s board has turned down the most recent offer from Paramount and Skydance to buy the company, stating that it’s not as good as their current deal with Netflix.
This deal is a significant step in the continuing trend of media companies merging, as Warner Bros. is now strongly backing Netflix in a way that could dramatically change the entertainment industry.
WBD Board Rejects Paramount Offer
The Warner Bros. Discovery board has advised shareholders to reject the latest offer from Paramount, which was made on December 22nd. The board’s decision was unanimous.
Honestly, as a viewer of this potential deal, I just didn’t see the payoff. The board felt it wasn’t worth the price, and frankly, I agree. It seemed loaded with potential problems and depended way too much on complicated loans – a recipe for the whole thing falling apart, if you ask me. It just didn’t feel secure at all.
Paramount’s proposed deal doesn’t offer enough value, according to Chairman Samuel A. Di Piazza Jr. He pointed to a large amount of debt and insufficient safeguards for shareholders as key concerns.
According to the board, if Warner Bros. Discovery (WBD) were to accept Paramount’s offer, they would likely face around $4.7 billion in fees and penalties for ending existing agreements. This could leave the deal worth only $1.1 billion if it ultimately fell through.
The Netflix Deal Remains Preferred
Warner Bros. Discovery has confirmed it will move forward with its planned merger with Netflix, an agreement originally made on December 5, 2025.
The deal sets Warner Bros. Discovery’s value at $27.75 per share, paid for with a combination of cash and Netflix stock, for a total company value of $82.7 billion.
Okay, so while Paramount’s going the route of being bought out with a lot of debt, the Netflix deal is totally different. They’re backing it with a massive $400 billion valuation and a really solid credit rating. Basically, Netflix is flush with cash and can afford this, which is a huge contrast to the situation at Paramount. As a movie fan, it’s reassuring to see some stability in the streaming world!
Warner Bros. Discovery’s board highlighted that the agreement with Netflix is less risky, won’t face complicated regulatory hurdles (like a CFIUS review), and still allows the company to move forward with its planned spin-off of Discovery Global.
Netflix Responds: “We’re Ready”
Netflix applauded the board’s decision on Monday, issuing a statement that reaffirmed their commitment to the agreement and highlighted the benefits it would bring to both investors and viewers.
According to Netflix and Warner Bros. leaders Ted Sarandos and Greg Peters, the two companies are combining their strengths and love of storytelling. They believe this partnership will give audiences more of the shows and movies they enjoy, both at home and in cinemas, while also creating more opportunities for filmmakers and supporting a healthy, competitive entertainment landscape.
Netflix has completed all the necessary antitrust paperwork with agencies like the U.S. Department of Justice and the European Commission, and anticipates the deal will be finalized in 12 to 18 months.
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2026-01-07 19:32