Warner Bros. Discovery says no to Paramount's $108B takeover, sticks with Netflix deal
Warner Bros. Discovery (WBD) just turned down a massive $108 billion buyout offer from Paramount Skydance, deciding instead to move forward with its planned merger with Netflix.
On December 17, WBD's board recommended shareholders reject the Paramount bid, stating that the Netflix deal offers greater value and stability for shareholders.
Why did WBD pick Netflix over Paramount?
Paramount's offer sounded big but came with major funding risks—there was no solid financing guarantee and it relied on complicated backers.
Plus, Paramount Skydance's lower valuation and shaky credit didn't help their case.
In contrast, WBD pointed out that Netflix has a much stronger financial position, making their offer feel safer.
What happens next?
Netflix is set to buy WBD's Warner Bros. division (think HBO, HBO Max, movies and TV studios) for about $82.7 billion in enterprise value.
Before the deal closes in 2026, WBD will spin off its traditional TV channels into a separate company.
Shareholders will get to vote on the merger by mid-2026—but first, regulators will review everything to make sure it doesn't hurt competition in streaming or entertainment.