Warner Bros Likely to Reject Paramount’s $108.4B Bid, Favor Netflix Offer

In a blockbuster move that could reshape the future of entertainment, Warner Bros Discovery is expected to reject a $108.4 billion takeover bid from Paramount, instead opting to support a competing offer from streaming giant Netflix, according to sources familiar with the decision.

A final recommendation from the Warner Bros Discovery board could come as soon as Wednesday, with insiders saying the board will advise shareholders to vote against Paramount’s aggressive, all-cash proposal.

The decision comes at a pivotal moment in the media landscape, as legacy studios scramble to adapt to the streaming-first future and as control of one of Hollywood’s most legendary content libraries hangs in the balance.

What’s at stake?

• The acquisition includes Warner Bros’ vast film and television library, stretching from golden age classics like Casablanca and Citizen Kane to modern blockbusters like Harry Potter, The Dark Knight, Friends, Game of Thrones, and more.

• The winning bidder also secures HBO and HBO Max, two of the most prestigious brands in premium content.

• Whoever lands the deal will hold a serious edge in the streaming wars one that could determine the long-term survival of multiple platforms.

The bids:

• Netflix submitted a $27-per-share cash-and-stock offer earlier this month, focused on Warner Bros’ non-cable assets. Sources say the deal would give Netflix critical IP while avoiding the regulatory complexities tied to cable ownership.

• Paramount, led by CEO David Ellison, fired back with a $30-per-share all-cash bid to acquire the entire company, including cable and studio operations. The bid is backed by $41 billion in equity (largely from the Ellison family and RedBird Capital) and $54 billion in debt financing secured from Bank of America, Citi, and Apollo.

Despite the larger number on paper, Warner Bros Discovery’s board is leaning toward Netflix’s offer due to its simpler structure, strategic alignment, and potential for a smoother regulatory path.

Sources say Warner executives remain skeptical about Paramount’s heavy reliance on debt and view the all-cash offer as potentially riskier for long-term integration. In addition, Jared Kushner’s Affinity Partners, once a financing partner for the Paramount bid, has reportedly exited the battle a sign that confidence in the deal may be slipping.

Paramount, for its part, has continued to insist in regulatory filings that its offer is “superior” and would offer a quicker path to closing. However, without full board backing from Warner Bros, Ellison may face an uphill climb to persuade shareholders directly.

Why it matters:

• The result of this bidding war could reshape the entire entertainment landscape, determining which platform controls some of the most valuable content in the industry.

• For Netflix, this is a chance to finally own the kind of deep IP library it has always lacked putting it in direct competition with Disney on content legacy and production muscle.

• For Paramount, it’s a make-or-break moment for a company trying to reinvent itself through bold acquisitions and high-risk financing.

Warner Bros Discovery has yet to issue a formal statement, and both Paramount and Netflix declined comment on Tuesday. But behind closed doors, the battle lines are drawn and the streaming wars just got personal.

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