Warner Bros Pushes Back on Paramount’s Hostile Bid, Reaffirms Support for Netflix Deal
Warner Bros. Discovery has once again rejected Paramount Global’s takeover attempt, urging shareholders to stay committed to its previously announced agreement with Netflix. The move intensifies a high‑stakes corporate showdown that could reshape the future of Hollywood.
According to reporting from AP News, Warner Bros’ board told investors that Paramount’s proposal carries “extraordinary levels of debt financing” and presents significant regulatory uncertainty. The company maintains that the Netflix deal offers “superior value with greater certainty.”
💼 Warner Bros Says Paramount’s Offer Is Too Risky
In a letter to shareholders, Warner Bros argued that Paramount’s $77.9 billion bid resembles a leveraged buyout, warning that the structure could expose investors to unnecessary financial risk if regulators block the merger.
Meanwhile, Netflix’s offer focuses solely on acquiring Warner’s studio and streaming assets — including HBO, Warner Bros Pictures, and its television production units — while leaving cable networks like CNN and Discovery to operate as a separate company.
Additional reporting from Audacy/1010 WINS confirms that Paramount has attempted to sweeten its offer with a $40.4 billion equity guarantee and a $5.8 billion breakup fee, matching Netflix’s protections.
📺 Netflix vs. Paramount: Two Competing Visions
Netflix’s plan
- Acquire Warner’s studio + streaming divisions
- Spin off cable networks
- Focus on global streaming dominance
Paramount’s plan
- Acquire all of Warner Bros Discovery
- Combine studios, streaming, news, and cable
- Create one of the largest entertainment conglomerates in the world
Warner’s board argues that Netflix’s approach is cleaner, faster, and less risky.
🎭 Shareholders Hold the Power Now
Investors have until January 21 to tender their shares and effectively choose the company’s future direction. The outcome will determine whether Hollywood moves toward:
- Streaming‑first consolidation (Netflix), or
- Traditional media mega‑mergers (Paramount)
Either path will have massive implications for film production, streaming competition, and the broader entertainment landscape.
Why This Fight Matters for the Future of Streaming
This battle isn’t just about who owns Warner Bros — it’s a referendum on the future of entertainment.
If Netflix wins, it signals that lean, global, data‑driven streaming companies are the future. If Paramount wins, it suggests legacy media giants still have the scale and leverage to dominate.
Hollywood hasn’t seen a corporate showdown this consequential in years.