Warner Bros. Discovery has turned down a hostile acquisition proposal from Paramount, reaffirming its preference for a merger agreement already reached with streaming heavyweight Netflix.
In a statement issued on Wednesday, Warner Bros. Discovery said the Paramount offer did not match the value or certainty provided by the Netflix deal. The company noted that Paramount’s latest approach failed to resolve longstanding issues that had been raised repeatedly during discussions over six earlier proposals.
According to the company, the planned merger with Netflix offers clearer and more dependable benefits to shareholders. Warner Bros. Discovery emphasized that it remains confident the agreement with Netflix represents the best possible outcome in terms of value and stability.
The entertainment industry was jolted on December 5 when Netflix announced it had struck a deal to acquire Warner Bros. Discovery for nearly $83 billion, marking the largest consolidation in the sector so far this decade. Shortly after, Paramount countered with an all-cash tender offer valuing the company at about $108.4 billion. Paramount is led by chief executive David Ellison, son of Oracle founder Larry Ellison.
Despite the higher valuation, Warner Bros. Discovery described Paramount’s bid as carrying significant risks. The company cited concerns over the financial structure of the offer, including backing from what it called an unclear and revocable trust, as well as the absence of any direct financial commitment from the Ellison family.
The bidding contest has also drawn political attention. President Donald Trump publicly expressed reservations about the Netflix deal, warning that it could give the streaming company excessive influence over the film and television market. He also said he wanted CNN, which he has frequently criticized, to come under new ownership as part of any sale involving Warner Bros. Discovery.
Unlike Netflix’s proposal, Paramount’s bid included plans to acquire cable networks such as CNN, TNT, TBS and Discovery, adding them to its existing television portfolio that includes CBS, MTV and Comedy Central.
As Netflix increasingly appeared to be the frontrunner, opposition within Hollywood intensified. Many industry insiders view Netflix skeptically, accusing it of undermining traditional theatrical releases and long-established business models.
Addressing these concerns, Netflix co-chief executive Ted Sarandos said in an interview in Paris that the company would continue releasing Warner Bros. films in cinemas if the acquisition goes through. He stressed that the studio would operate independently and maintain conventional theatrical distribution, acknowledging that some of his earlier remarks on the subject may have caused confusion.