{"id":501105,"date":"2026-01-08T10:27:10","date_gmt":"2026-01-08T10:27:10","guid":{"rendered":"https:\/\/www.europesays.com\/us\/501105\/"},"modified":"2026-01-08T10:27:10","modified_gmt":"2026-01-08T10:27:10","slug":"warner-bros-rejects-paramount-takeover-tells-shareholders-to-stick-with-netflix","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/501105\/","title":{"rendered":"Warner Bros rejects Paramount takeover, tells shareholders to stick with Netflix"},"content":{"rendered":"

NEW YORK — Warner Bros. again rejected a takeover bid from Paramount<\/a> and told shareholders Wednesday to stick with a rival offer from Netflix. <\/p>\n

Warner\u2019s leadership has repeatedly rebuffed Skydance-owned Paramount\u2019s overtures \u2014 and urged shareholders<\/a> just weeks ago to back its the sale of its streaming and studio business to Netflix for $72 billion<\/a>. Paramount, meanwhile, has made efforts to sweeten its $77.9 billion hostile offer<\/a> for the entire company.<\/p>\n

Warner Bros. Discovery said Wednesday that its board determined Paramount\u2019s offer is not in the best interests of the company or its shareholders. It again recommended shareholders support the Netflix deal.<\/p>\n

\u201cParamount\u2019s offer continues to provide insufficient value, including terms such as an extraordinary amount of debt financing that create risks to close and lack of protections for our shareholders if a transaction is not completed,” Warner Bros. Discovery Chair Samuel Di Piazza Jr. said in a statement. In contrast, he added, the company’s agreement with Netflix \u201cwill offer superior value at greater levels of certainty.\u201d<\/p>\n

Paramount did not immediately respond to a request for comment. The company’s hostile bid is still on the table. Warner shareholders currently have until Jan. 21 to \u201ctender\u201d their shares.<\/p>\n

Late last month, Paramount announced an \u201cirrevocable personal guarantee\u201d<\/a> from Oracle founder Larry Ellison \u2014 who is the father of Paramount CEO David Ellison \u2014 to back $40.4 billion in equity financing for the company\u2019s offer. Paramount also increased its promised payout to shareholders to $5.8 billion if the deal is blocked by regulators, matching Netflix’s breakup fee.<\/p>\n

In its Wednesday letter to shareholders, Warner expressed concerns about a potential deal with Paramount. Warner said it essentially considers the offer a leveraged buyout, which includes a lot of debt, and also pointed to operating restrictions that it said were imposed by Paramount’s offer and could \u201champer WBD\u2019s ability to perform\u201d throughout a transaction.<\/p>\n

The battle for Warner and the value of each offer grows complicated because Netflix and Paramount want different things. Netflix\u2019s proposed acquisition includes only Warner\u2019s studio and streaming business, including its legacy TV and movie production arms and platforms like HBO Max. But Paramount wants the entire company \u2014 which, beyond studio and streaming, includes networks like CNN<\/a> and Discovery.<\/p>\n

If Netflix is successful, Warner\u2019s news and cable operations would be spun off into their own company, under a previously-announced separation<\/a>.<\/p>\n

A merger with either company could take over a year to close \u2014 and will attract tremendous antitrust scrutiny<\/a> along the way. Due to its size and potential impact, it will almost certainly trigger a review by the U.S. Justice Department, which could sue to block the transaction or request changes. Other countries and regulators overseas may also challenge the merger. And politics are expected to come into play under President Donald Trump<\/a>, who has made unprecedented suggestions about his personal involvement<\/a> on whether a deal will go through.<\/p>\n

Trade groups across the entertainment industry have continued to sound the alarm about both deals.<\/p>\n

In a statement addressed to a Congressional antitrust subcommittee on Wednesday, Cinema United<\/a> \u2014 which represents more than 60,000 movie screens worldwide \u2014 reiterated it was \u201cdeeply concerned\u201d that Netflix’s acquisition could harm both moviegoers and people who work in theaters, pointing to the streaming giant’s past reliance on its online platform. The group said its concerns were \u201cno less serious\u201d for Paramount’s bid \u2014 warning of consequences of further consolidation overall, which it said could result in job losses and less diversity in filmmaking.<\/p>\n","protected":false},"excerpt":{"rendered":"NEW YORK — Warner Bros. again rejected a takeover bid from Paramount and told shareholders Wednesday to stick…\n","protected":false},"author":3,"featured_media":501106,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[224830,347,64,171,57,57119,61,67,132,68],"class_list":{"0":"post-501105","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-224830","9":"tag-article","10":"tag-business","11":"tag-entertainment","12":"tag-general-news","13":"tag-media-and-entertainment-industry","14":"tag-u-s-news","15":"tag-united-states","16":"tag-unitedstates","17":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115859006818540620","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/501105","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=501105"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/501105\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/501106"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=501105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=501105"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=501105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}