Warner Bros. Discovery’s board has unanimously rejected the latest amended hostile takeover bid from Paramount Skydance, reinforcing their commitment to an $82.7 billion merger agreement with Netflix. The board cited several reasons for rejecting Paramount’s proposal, emphasizing that it provides insufficient value and introduces significant risks. Concerns included excessive debt financing, lack of adequate shareholder protections, and the heightened risk of deal failure.
This rejection marks the second time Paramount’s offer has been turned down since Netflix announced its acquisition of Warner Bros. Discovery, which encompasses its games division. The board’s decision underscores their confidence in the Netflix deal’s strategic benefits compared to Paramount’s offer.
In a related development, Paramount has taken legal action against Warner Bros. Discovery, filing a lawsuit in Delaware Chancery Court. The suit demands access to the terms of Netflix’s acquisition offer, arguing that Paramount’s $30 per share all-cash proposal is superior to the deal structured by Netflix. Paramount claims the Netflix agreement involves a complex compensation package that includes $23.25 in cash per share, Netflix shares valued at $4.11, and a Global Networks equity spinoff.
Paramount CEO David Ellison is seeking to compel Warner Bros. Discovery to provide shareholders with comprehensive information to evaluate the merits of Paramount’s takeover attempt. Nevertheless, Warner Bros. Discovery remains steadfast in its support for the Netflix deal, citing its long-term strategic advantages and superior value despite Paramount’s legal and corporate maneuvers.

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Warner Bros. Discovery's board unanimously rejected Paramount Skydance's hostile takeover bid for the second time, maintaining their $82.7 billion merger agreement with Netflix. The board cited insufficient value, excessive debt financing, and lack of shareholder protections as key reasons. Paramount responded by filing a lawsuit in Delaware Chancery Court to access Netflix's acquisition terms, claiming their $30 per share all-cash offer is superior to Netflix's complex compensation package. Warner Bros. Discovery continues to support the Netflix deal for its strategic long-term advantages.

Warner Bros. Discovery Rejects Paramount’s Takeover Bid Amid Legal Battle Over Netflix Deal