Warner Bros. discovery Rebuffs Paramount Skydance bid, Keeps Netflix Merger as Preferred Path
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January 7, 2026 — In a unanimous ruling, Warner Bros. Discovery’s board rejected a revamped approach from Paramount Skydance and reaffirmed Netflix’s merger as the preferred route for the media giant’s ongoing consolidation.
Paramount Skydance had pitched a bid valuing the stake at $108.4 billion, enhanced by a personal guarantee totaling $40.4 billion fromLarry Ellison, the tech magnate allied with former President Donald Trump. Ellison’s son, David, leads Paramount Skydance, which controls the historic Hollywood studio and networks including CBS.
The WBD board said the tender offer did not advance the interests of Warner Bros. Discovery or its shareholders and remained inferior to the Netflix merger on several critical points.
Netflix first announced a deal on December 5 to acquire Warner Bros. Discovery and the HBO Max service for about $83 billion, a landmark transaction in the streaming era. Three days later, Paramount launched its antagonistic bid and later adjusted the offer to address concerns about the financing required by such a large debt load.
Warner Bros. Discovery attributed its decision to the substantial costs, risks, and uncertainties associated with Paramount’s proposal, stating these factors outweighed any potential gains for shareholders.
Key Facts
| Event | date | value | Parties | Status |
|---|---|---|---|---|
| Netflix-WBD-HBO Max deal | December 5, 2025 | Approximately $83 billion | Warner Bros.Discovery, Netflix, HBO Max | Preferred path for WBD |
| Paramount Skydance bid | December 8, 2025 | $108.4 billion | Paramount Skydance, Warner Bros. Discovery | Hostile bid; later amended |
| Ellison guarantee | Not disclosed publicly | $40.4 billion | Larry Ellison | Included in bid |
| WBD board decision | January 7, 2026 | — | Warner bros. Discovery | Unanimous rejection; Netflix remains the preferred path |
why This Matters for the Media landscape
The standoff highlights how mega-deals in the streaming era hinge on financing structures as much as strategic fit. For shareholders, the choice between a Netflix-backed merger and a debt-heavy bid from paramount Skydance will shape risk exposure, debt levels, and long-term profitability in a landscape where streaming competition remains fierce.
Observers say the outcome could influence future moves by studios pursuing scale, content strategies, and distribution rights as the industry continues to evolve toward bundled, content-rich offerings.
Engage with the story
Which path do you believe will maximize shareholder value in media consolidation—an all-in Netflix merger or a debt-financed rival bid?
How might rising debt levels influence the next wave of industry deals and strategic partnerships?
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