Warner Bros. Discovery has rejected a hostile takeover bid from Paramount, reaffirming its support for a proposed merger with streaming giant Netflix.
In a statement released on Wednesday, Warner Bros. Discovery said Paramount’s offer failed to address long-standing concerns, describing it as risky and less certain than the Netflix deal.
“The terms of the Paramount proposal once again fail to address key concerns that we have consistently communicated throughout our extensive engagement and review of their six previous proposals,” the company said.
“We are confident that our merger with Netflix represents superior, more certain value for our shareholders.”
Netflix had sent shockwaves through Hollywood on December 5 after announcing an agreement to acquire Warner Bros. Discovery for nearly $83 billion, marking the entertainment industry’s biggest consolidation deal of the decade.
Just three days later, Paramount countered with an all-cash tender offer valued at $108.4 billion. Paramount is led by CEO David Ellison, son of Oracle founder Larry Ellison and a known ally of U.S. President Donald Trump.
Despite the higher valuation, Warner Bros. Discovery raised concerns about Paramount’s financing structure, stating that the bid relied on “an unknown and opaque revocable trust” and lacked any firm financial commitment from the Ellison family.
“The value we have secured for shareholders through the Netflix merger is extraordinary by any measure,” the company added.
President Trump has repeatedly commented on the bidding war, expressing concerns that a Netflix takeover could leave the streaming platform with excessive control over the film and television industry.
He also said he wanted CNN — owned by Warner Bros. Discovery — to come under new ownership, continuing his long-running feud with the news network.
Unlike Netflix’s proposal, Paramount’s bid included plans to acquire Warner Bros. Discovery’s cable networks, such as CNN, TNT, TBS, and Discovery, which would be combined with Paramount’s existing assets, including CBS, MTV, and Comedy Central.
As Netflix emerged as the preferred bidder for Warner Bros. Discovery — home to iconic titles such as Casablanca, the Harry Potter franchise, and Friends — the proposed deal sparked strong resistance in Hollywood. Critics have raised concerns about Netflix’s dominance and its approach to theatrical releases.
Addressing those fears, Netflix CEO Ted Sarandos said the company would maintain traditional cinema distribution for Warner Bros. films if the merger is approved.
“We’re going to continue to operate Warner Bros. studios independently and release the movies traditionally in cinema,” Sarandos said during an interview in Paris, acknowledging that his past remarks on theatrical releases had caused confusion.
The merger remains subject to regulatory approval, with industry observers closely watching what could become a defining moment for the future of Hollywood.
