Warner Bros. Discovery says no to Paramount, sticks with Netflix mega-merger
Warner Bros. Discovery (WBD) just turned down Paramount's $30/share cash offer—Paramount Skydance's eighth try to buy them out.
The board felt the deal didn't measure up to their existing merger agreement with Netflix, which is worth a massive $82.7 billion and comes with fewer risks.
Why did WBD pick Netflix?
The Netflix deal gives WBD shareholders both cash ($23.25 per share) and Netflix stock, plus access to big assets like HBO, DC, and more—all from a company valued at $400 billion.
Even though Skydance's offer had a huge equity guarantee from Larry Ellison, WBD worried about steep penalties if they ditched the Netflix deal.
What happens next?
Before anything's official, the WBD-Netflix merger has to clear a government antitrust review—a process that could drag on for 12-18 months or more.
Meanwhile, this streaming industry bidding war shows how much value and certainty matter when big media companies make moves.