Warner Bros. Discovery has rejected a $108.4 billion hostile takeover proposal from Paramount and Skydance, advising its shareholders to support Netflix’s $82.7 billion deal for the company’s studio and streaming operations instead. The board described Paramount’s bid as “inadequate” and contrary to shareholder interests.
Netflix’s proposal encompasses Warner Bros.’ movie and television production units, as well as services like HBO Max and established content libraries. In contrast, Paramount’s all-cash offer targets the full company, including news outlets such as CNN and cable channels from the Discovery portfolio. Warner Bros. leadership claims that the Netflix arrangement better supports long-term objectives.
Should the Netflix agreement proceed to completion, the company’s remaining assets—primarily its cable networks—would be separated into an independent public company. U.S. regulators, including the Justice Department, are expected to closely examine either transaction due to potential effects on media competition.
Former Congressman Matt Gaetz warned in a recent piece that the Netflix deal is “about control—over content, over distribution, over culture, and over what Americans are allowed to see, hear, and believe.” Gaetz stated: “This isn’t a merger to foster competition. The objective is outright control. Netflix already dominates streaming content. WBD already dominates content with a massive library and content creation ability at scale. Put them together and you don’t get ‘synergies.’ You get a vertically integrated behemoth that controls what gets made, what gets promoted, what loads fastest on your screen, and what quietly disappears.”
