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Warner Bros. Discovery Dismisses Paramount's Revised Takeover Proposal

KVIA•Wednesday, January 7, 2026 at 12:03 PM•CNN Newsource

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Warner Bros. Discovery's board has rejected Paramount's latest takeover bid, deeming it inadequate and too risky. In a letter to shareholders, the board emphasized that Paramount's offer, which involves over $50 billion in debt financing, poses significant risks compared to the certainty of a merger with Netflix, which has already agreed to pay $27.75 per share. Despite Paramount's attempt to address concerns by involving billionaire Larry Ellison as a backer, the board remains unconvinced, citing the value of WBD's cable assets and the potential for a new publicly traded company, Discovery Global. Paramount now faces a crucial decision on whether to increase its bid or proceed with a shareholder vote.

Key Details: • Paramount's offer stands at $30 per share, but WBD prefers Netflix's $27.75 per share deal. • WBD's board warns of over $50 billion in debt associated with Paramount's proposal. • Discovery Global, WBD's new entity, is expected to hold significant value separate from the merger.

paramount warner-bros netflix takeover merger

People & Organizations

ParamountDavid EllisonLarry EllisonWarner Bros. DiscoveryNetflixDavid Zaslav

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