"Warner Bros. Discovery's board has formally rejected the $108 billion takeover bid from Paramount Skydance, the company announced. WBD said it remains committed to its $82.7 billion deal with Netflix, which would close some time next year, pending regulatory approval. "[The board] has unanimously determined that the tender offer launched by Paramount Skydance on December 8, 2025 is not in the best interests of WBD and its shareholders and does not meet the criteria of a "Superior Proposal" under the terms of WBD's merger agreement with Netflix announced on December 5, 2025," the studio said in the press release."
"Paramount's offer was funded in part by sovereign wealth funds from Saudi Arabia, Qatar and Abu Dhabi, so it could have triggered a national security review by the US government. However, Paramount said that even if those entities dropped out, the company's owners (the Ellisons) would "backstop the full amount of the bid." However, the board said that Paramount "has consistently misled WBD shareholders that its proposed transaction has a 'full backstop' from the Ellison family. It does not, and never has," adding that "the terms of the Netflix merger are superior." WBD explained that Paramount is relying on an "opaque revocable trust" for said backstop which is "no replacement for a secured commitment by a controlling shareholder." WBD's board also noted that Paramount expects to achieve $9 billion in cost synergies from the merger, and that "would make Hollywood weaker, not stronger.""
"In a statement, Netflix co-CEO Ted Sarandos said that "the Warner Bros. Discovery board reinforced that Netflix's merger agreement is superior and that our acquisition is in the best interest of stockholders. This was a competitive process that delivered the best outcome for consumers, creators, stock"
Warner Bros. Discovery's board unanimously rejected Paramount Skydance's $108 billion tender offer and reaffirmed commitment to an $82.7 billion merger agreement with Netflix, expected to close next year pending regulatory approval. Paramount's bid included financing from sovereign wealth funds in Saudi Arabia, Qatar and Abu Dhabi, raising potential U.S. national security review concerns. Paramount claimed the Ellison family would backstop the full bid if sovereign investors withdrew. WBD's board said that claim was false, criticized reliance on an opaque revocable trust rather than a secured shareholder commitment, and said projected $9 billion cost synergies would weaken Hollywood. Netflix executives called the Netflix deal superior and in stockholders' best interest.
Read at Engadget
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