Warner Bros. Discovery on Wednesday turned down a hostile takeover bid from Paramount, rebuffing the offer made last week in an attempt to outmaneuver Netflix’s proposed acquisition of the Hollywood studio and CNN owner.
In a statement, Warner Bros. Discovery said it considered Netflix’s offer more attractive, stressing that Paramount’s bid failed to resolve longstanding issues. The company noted that the proposal “once again does not address key concerns we have repeatedly raised during our extensive engagement and review of six prior submissions.”
The media group said it remains confident that the Netflix deal offers greater certainty and superior value for shareholders. Netflix sent shockwaves through the entertainment industry on December 5 after announcing an agreement to acquire Warner Bros. Discovery for nearly $83 billion, marking the largest media consolidation of the decade. Just days later, Paramount led by CEO David Ellison, son of Oracle founder Larry Ellison countered with an all-cash tender offer valuing the company at $108.4 billion.
Despite the higher headline figure, Warner Bros. Discovery described Paramount’s proposal as high-risk, pointing out that it relied on what it called an “opaque and revocable trust” and lacked any firm financial commitment from the Ellison family.
“The value secured for our shareholders through the Netflix transaction is exceptional by any standard,” the company said.
Former U.S. President Donald Trump also weighed in on the bidding battle, warning that a Netflix takeover could concentrate too much power in the film and television industry. He later said he wanted CNN to change ownership as part of any sale, renewing his long-running criticism of the network.
Unlike Netflix’s proposal, Paramount’s offer included the acquisition of Warner Bros. Discovery’s cable networks including CNN, TNT, TBS and Discovery which would have been added to Paramount’s existing portfolio of channels such as CBS, MTV and Comedy Central.
As Netflix appeared to emerge as the frontrunner, the potential takeover sparked strong opposition within Hollywood. Industry insiders have long viewed the streaming giant with skepticism, citing its preference for limited theatrical releases and its disruption of traditional studio practices.
Addressing those concerns, Netflix co-chief executive Ted Sarandos said in an interview in Paris on Tuesday that Warner Bros. films would continue to receive traditional cinema releases if the deal goes through. He added that Warner Bros. studios would operate independently under Netflix, acknowledging that his earlier comments about theatrical distribution may have caused confusion.
