Warner Bros. Discovery has rejected Paramount’s $30 per share hostile takeover bid, calling it an “illusory” offer and citing concerns about the financing arrangement backed by Saudi royal families. The company claims that the current plan to sell most of its media assets to Netflix is a better deal for shareholders.
The decision comes after Paramount reiterated its offer on Wednesday morning, stating that it would deliver WBD shareholders with superior value and a faster path to completion than the Netflix transaction. However, executives at WBD have questioned the legitimacy of Paramount’s financing, citing concerns about why the royal families are seeking to make the investment.
Warner Bros. Discovery board chair Sam DiPiazza expressed concerns about Paramount’s ability to complete the purchase, stating that “doing a deal is great, but closing a deal is better.” The company plans to split itself into two publicly traded pieces next summer and then seek regulatory approval for Netflix to buy the Warner Bros part.
In contrast, Netflix has moved forward with its plan to acquire WBD’s Hollywood assets, citing confidence in its ability to complete the transaction. However, some US lawmakers have raised concerns about Paramount’s Middle Eastern financing arrangement, which they say raises national security concerns due to foreign influence over a major American media company.
The corporate tug-of-war may drag on for months, with Paramount potentially revising its offer or taking other steps. A shareholder vote is set to be scheduled in the spring or early summer.
Source: https://edition.cnn.com/2025/12/17/media/wbd-paramount-ellison-netflix-warner-bros-offer