Wed Dec 17 17:33:45 UTC 2025: Warner Bros. Discovery Rejects Paramount Skydance Takeover Bid, Cites Misleading Financing
Los Angeles, CA – Warner Bros. Discovery’s board has rejected Paramount Skydance’s $108.4 billion hostile takeover bid, accusing the media giant of misleading shareholders about the financing behind its offer. The decision comes a day after Affinity Partners, a fund backed by Jared Kushner, pulled out of the deal.
In a scathing letter to shareholders, the Warner Bros. board alleged that Paramount “consistently misled” them regarding the financial guarantees behind its $30-per-share cash offer, claiming the Ellison family, led by Oracle co-founder Larry Ellison, had not fully guaranteed the bid.
The battle for control of Warner Bros., and its valuable assets like HBO Max and the Harry Potter franchise, has been fierce, with Paramount vying against Netflix. Warner Bros. has deemed Paramount’s offer “inferior” to Netflix’s $27.75 per share offer, a binding agreement with solid debt commitments.
The board emphasized that Paramount’s offer contained “numerous, significant risks” and could be terminated or amended at any time before completion.
Netflix has already engaged with the US Department of Justice and the European Commission, expressing confidence in regulatory approval. They’ve also assured Warner Bros. that they will continue releasing the studio’s films in cinemas.
Paramount had argued it had “air-tight financing,” backed by the Ellison family, RedBird Capital, and debt commitments from major banks. However, Warner Bros. countered that the offer relied on an “unknown and opaque” Lawrence J Ellison Revocable Trust, whose assets and liabilities are not publicly disclosed and are subject to change.
News of the rejection sent Paramount Skydance’s stock tumbling, while Netflix shares surged. Warner Bros. Discovery was down slightly.
The future of Warner Bros. Discovery and the evolving landscape of media consolidation remain uncertain as the battle between the media giants continues.
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