In a dramatic move set to reshape the global entertainment industry, Warner Bros Discovery (WBD) has firmly rejected a colossal hostile takeover bid from rival Paramount Skydance. The board has instead signalled its preference for a separate deal with streaming titan Netflix, a decision that could consolidate unprecedented power in the media market.
Board Deems Paramount Offer "Inadequate" and Risky
The WBD board delivered a stark verdict on Wednesday 17 December 2025, dismissing Paramount's ambitious proposal as financially "inadequate" and posing a "significant risk" to its shareholders. Paramount's offer, which valued Warner Bros Discovery at a staggering $108.4 billion including debts, was criticised for failing to address key strategic concerns held by the WBD leadership.
This valuation notably surpassed a competing offer from Netflix, which tabled approximately $72 billion specifically for WBD's coveted film and television studios. The rejection throws the future of these iconic Hollywood assets into sharp relief, with a potential Netflix union now appearing the most likely outcome.
Kushner-Linked Backer Withdraws, Altering Regulatory Landscape
Complicating Paramount's position further was the sudden withdrawal of financial backing from Affinity Partners, the private equity firm owned by Jared Kushner. This move is viewed by industry analysts as stripping Paramount of a potential advantage in the arduous battle for regulatory approval.
The involvement of Kushner's firm had introduced a complex political dimension, given former President Donald Trump's previously voiced concerns about the market share a combined Netflix and WBD entity would command. With that backing now removed, the path for regulatory scrutiny appears to have shifted.
Shareholders Urged to Spurn Paramount Advance
In light of its assessment, the Warner Bros Discovery board has taken the definitive step of publicly urging its shareholders to reject the Paramount Skydance takeover bid. This clear guidance leaves little room for doubt regarding the company's strategic direction and its scepticism about a merger with Paramount.
The decision underscores a pivotal moment in the ongoing streaming wars, where scale and content libraries are seen as critical for survival. A successful Netflix acquisition of WBD's studios would create a content behemoth, fundamentally altering competitive dynamics against rivals like Disney, Amazon, and Apple.
The coming weeks are expected to involve intense negotiation and regulatory scrutiny, as one of the largest media consolidations in history moves closer to reality. The entertainment world watches on, aware that its core is about to be shaken.
