Warner Bros Discovery Board Rejects Paramount's $108.4 Billion Bid
Warner Bros Discovery's board has unanimously rejected Paramount Skydance's $108.4 billion acquisition bid, favoring Netflix's $82.7 billion offer. Concerns over Paramount's financing structure, which would result in $87 billion in debt, influenced the decision.
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In a decisive move, Warner Bros Discovery has firmly turned down Paramount Global's revised $108.4 billion hostile takeover bid, opting instead to reaffirm its commitment to a competing offer from Netflix . The board's unanimous decision, announced on January 7, 2026, underscores significant concerns over Paramount's financing plan, which would saddle the combined entity with an unprecedented $87 billion in debt, marking it as the largest leveraged buyout in history.
Paramount's proposal, which included $40 billion in equity personally guaranteed by Oracle Corporation's co-founder Larry Ellison larry ellison, and $54 billion in debt, was deemed financially reckless and fraught with execution risks. In contrast, Netflix's offer, valued at $82.7 billion, presents a clearer financial structure with $27.75 per share in cash and stock, bolstered by the company's $400 billion market value and investment-grade credit rating.
