The takeover battle for Warner Bros. Discovery (WBD) appears to be nearing another decisive moment — and it’s not going in Paramount Skydance’s favour. The WBD board is widely expected to reject Paramount Skydance’s amended all-cash offer, even as David Ellison continues his aggressive push to build what he sees as a future-ready Hollywood giant.
According to industry reports, the board is preparing to formally turn down the revised proposal when it meets next week, keeping its focus firmly on the already-announced merger with Netflix.
Why WBD isn’t budging
Despite the noise around Paramount Skydance’s renewed bid, there has been no real shift in sentiment inside the WBD boardroom. Executives and directors reportedly remain convinced that Netflix offers the better long-term strategic fit for Warner Bros., HBO, and its premium entertainment assets.
WBD has already agreed to merge with Netflix in a deal valued at just under $83 billion, a transaction that blends cash and stock and notably excludes WBD’s traditional linear cable channels.
Paramount Skydance isn’t backing off — yet
Even with rejection looming, Paramount Skydance hasn’t stepped aside. The company is now pursuing a tender offer directly to WBD shareholders, hoping market pressure could change the outcome.
As this corporate tug-of-war has played out through press statements, filings, and earnings calls, WBD’s stock has surged more than 170% this year — although that rise comes after a long stretch in 2024 when shares traded below $10.
Larry Ellison ups the stakes
Paramount’s amended offer, submitted on December 22, focused heavily on addressing concerns around financing. In a major move, Larry Ellison stepped in with an irrevocable personal guarantee of $40.4 billion, strengthening Paramount’s $108 billion all-cash proposal for WBD’s full asset portfolio.
That offer includes major properties like CNN, TNT, and other legacy cable channels, many of which are already expected to be spun off into a separate company next year.
Paramount also raised its breakup fee to $5.8 billion, matching Netflix’s figure — a clear attempt to show seriousness and financial muscle if regulatory hurdles derail the deal.
Netflix watching from the sidelines
If WBD formally rejects Paramount’s bid — as expected — the next question is whether Paramount will raise its offer again. Should that happen, attention will shift squarely to Netflix and whether it feels any pressure to respond.
So far, there’s no indication that Netflix is eager to sweeten its deal, especially given that its agreement avoids legacy cable exposure and aligns cleanly with its streaming-first strategy.
Final words
For now, Warner Bros. Discovery seems committed to its Netflix future, even as Paramount Skydance keeps knocking with deeper pockets and louder guarantees. Whether Ellison is willing to push the bid even higher — or whether Netflix is content to stand firm — could determine how this Hollywood power struggle finally ends.
One thing is certain: the fight for WBD has become one of the most closely watched media battles of the decade.
