NEW YORK, 30 DECEMBER 2025 — Warner Bros. Discovery is preparing to reject a renewed hostile takeover offer from Paramount, drawing a firm line under one of the most closely watched corporate battles in Hollywood this year and reaffirming its commitment to an alternative strategic path anchored around its agreement with Netflix.
People familiar with the matter say the Warner Bros. Discovery board is expected to formally dismiss Paramount’s amended proposal as early as next week, despite the offer’s eye-catching headline value of about US$108 billion and the backing of billionaire technology magnate Larry Ellison. The move would mark a decisive rejection of Paramount’s attempt to force consolidation between two of the world’s most storied media empires.
Paramount’s all-cash bid, pitched directly to shareholders earlier this month, valued Warner Bros. Discovery at roughly US$30 per share and was framed as a transformational deal that would reunite major film studios, television networks and streaming assets under a single corporate roof. To address concerns over financing certainty, Paramount later strengthened its proposal by adding personal financial assurances linked to Ellison, aiming to bolster confidence in its ability to close the transaction.
Yet insiders say those enhancements have failed to sway Warner Bros. Discovery’s directors, who remain unconvinced that the bid adequately compensates shareholders for the execution risks, regulatory uncertainty and strategic disruption that would accompany such a sweeping merger. Board members are also said to be wary of abandoning an existing agreement with Netflix, which management views as offering greater certainty of value and a clearer operational roadmap.
Under its current strategy, Warner Bros. Discovery is focused on sharpening its core content and streaming businesses, including Warner Bros. Pictures, HBO and its flagship streaming platform — while reassessing the role of legacy linear television assets. Executives have repeatedly argued that the Netflix-linked transaction, though lower in headline valuation, provides a more pragmatic route to unlocking long-term shareholder value without the complexity of a hostile takeover.
Earlier this month, the company publicly advised shareholders to reject Paramount’s advances, stating that the offer did not constitute a “superior proposal” under its fiduciary framework. That stance has hardened as Paramount intensified its outreach, underscoring the board’s confidence in its chosen strategy and its reluctance to be pressured into a deal driven by scale alone.
For Paramount, the looming rejection underscores the difficulty of executing large-scale media consolidation in an era of heightened regulatory scrutiny, volatile capital markets and rapidly shifting consumer viewing habits. Analysts say that unless Paramount materially improves its terms or identifies a compromise structure, its chances of winning over Warner Bros. Discovery’s board remain slim.
Beyond the immediate deal drama, the standoff has broader implications for the global media industry. As traditional entertainment groups grapple with streaming economics, rising content costs and competition from deep-pocketed technology players, the outcome of this battle could shape how future mega-mergers are structured, and how aggressively boards defend strategic independence in the face of unsolicited bids.
For now, Warner Bros. Discovery appears set to hold its ground, betting that disciplined execution and strategic clarity will ultimately prove more valuable than the allure of a blockbuster takeover.
