Warner Bros Discovery is preparing to rebuff a $108.4 billion hostile takeover bid from Paramount Skydance, with its board expected to advise shareholders to vote against the proposal and reaffirm support for Netflix’s $82.7 billion acquisition offer. A formal decision could be announced as early as Wednesday, according to reports close to the matter, marking another dramatic turn in the battle for one of Hollywood’s most valuable content libraries.
The move would reinforce Netflix’s position in the race to secure Warner Bros’ prized assets, which include its film and television studio, the HBO brand, the HBO Max streaming service, and a vast catalogue spanning nearly a century of cinema and television. The library includes classics such as Casablanca and Citizen Kane alongside modern global franchises like Harry Potter and long-running television hits including Friends.
Paramount Skydance, led by Paramount chief executive David Ellison, took its bid directly to Warner Bros shareholders earlier this month with an all-cash offer valuing the company at roughly $30 a share. Paramount has argued in regulatory filings that its proposal is superior to Netflix’s deal and would face fewer regulatory hurdles. The offer is backed by $41 billion in new equity, supported by the Ellison family and RedBird Capital, alongside $54 billion in debt commitments from major lenders including Bank of America, Citigroup and Apollo.
Despite the higher headline valuation, Warner Bros is constrained by the terms of its existing agreement with Netflix, which prevents the company from actively soliciting rival bids. It may, however, consider unsolicited offers, and any superior proposal must be presented to Netflix, which retains the right to match it. Sources suggest the board views Netflix’s bid as offering greater certainty of completion in an increasingly complex regulatory and political environment.
The contest has also been shaped by shifting alliances among financiers. Affinity Partners, the investment firm founded by Jared Kushner, President Trump’s son-in-law, is reported to be withdrawing from Paramount’s financing group, reducing one pillar of support for the hostile bid. Paramount and Affinity Partners declined to comment on the development.
Political scrutiny continues to hover over the deal. President Trump has said he would review any major transaction involving media companies but has denied suggestions that he is close to the Ellison family or would favour Paramount’s bid. This week, he publicly criticised Paramount-owned CBS News, claiming that its flagship programme 60 Minutes had treated him more harshly since the proposed takeover emerged.
If Warner Bros formally rejects the Paramount Skydance offer, it would consolidate Netflix’s position as the frontrunner to absorb one of the last great independent Hollywood studios, potentially reshaping the balance of power in the global streaming wars and further concentrating control of premium content in the hands of a single platform.
