Warner Bros likely to reject Paramount’s $108.4 billion offer, favors Netflix

Warner Bros. Discovery is expected to advise its shareholders to reject Paramount Skydance’s massive $108.4 billion takeover proposal, signaling a renewed preference for Netflix’s competing bid, according to a foreign agency news report.

Sources familiar with the matter say the Warner Bros. Discovery board could make its position public as early as Wednesday. If confirmed, the move would deal a major blow to Paramount’s ambitions and mark another dramatic turn in the high-stakes battle for one of Hollywood’s most valuable media portfolios.

By leaning back toward Netflix, Warner Bros. Discovery would be endorsing a deal that reshapes the streaming landscape.

The assets at the center of the bidding war include the iconic Warner Bros film and television studio, an expansive content library featuring classics such as Casablanca and Citizen Kane, modern franchises like Harry Potter, hit series including Friends, as well as HBO and the HBO Max streaming platform.

Industry observers note that securing these assets would give the winning bidder a decisive edge in the global streaming wars, thanks to the depth and longevity of Warner Bros’ intellectual property. A spokesperson for Warner Bros. Discovery declined to comment on the matter.

Earlier this month, Netflix emerged as the frontrunner with a $72 billion cash-and-stock offer for Warner Bros’ non-cable assets, a bid seen as strategically focused and financially disciplined.

Following Netflix’s move, Paramount CEO David Ellison bypassed the board and took his proposal directly to Warner Bros. shareholders, offering $30 per share in an all-cash bid for the entire company. Paramount has argued in regulatory filings that its proposal is superior to Netflix’s and would face fewer regulatory hurdles.

The Paramount bid is backed by $41 billion in new equity financed by the Ellison family and RedBird Capital, along with $54 billion in debt commitments from major lenders including Bank of America, Citi, and Apollo.

However, momentum appears to be shifting. Bloomberg has reported that Jared Kushner’s Affinity Partners, one of Paramount’s key financing partners, is exiting the bidding process, potentially weakening Paramount’s position.

Neither Paramount nor Affinity Partners immediately responded to Reuters’ requests for comment.

If Warner Bros. Discovery formally recommends voting against Paramount’s offer, it would significantly tilt the balance toward Netflix and reshape the future of one of the entertainment industry’s most storied studios.