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Published : 31 Dec 2025, 10:51 AM
Warner Bros Discovery will likely reject Paramount Skydance's amended $108.4 billion hostile bid for the storied Hollywood studio despite a personal guarantee from billionaire Larry Ellison backing the media giant's offer, according to a person familiar with the matter.
The board has yet to make a final decision, but is expected to meet next week, said the person, who requested anonymity to discuss internal deliberations.
Warner Bros and Paramount declined to comment on the board's position, reported earlier by CNBC.
The decision could keep Warner Bros on track to pursue a rival cash-and-stock deal with Netflix despite Paramount's attempt to sweeten its offer.
Ellison, whose son David is chairman and CEO of Paramount, personally guaranteed the equity underpinning the bid, hoping to ease doubts that had dogged its earlier proposal.
The company did not increase its $30-per-share all-cash offer, but it raised its regulatory reverse termination fee to match Netflix and extended its tender offer deadline.
Netflix's $82.7 billion offer, while lower in headline value, offers a clearer financing structure and fewer execution risks, analysts have said.
Under terms of that agreement, Warner Bros would face a $2.8 billion breakup fee if it walks away from the Netflix deal.
Harris Oakmark, Warner Bros' fifth largest investor with 96 million shares, said the revised offer wasn't "sufficient," and noted that it was not enough to cover the breakup fee.
Paramount has argued its bid would face fewer regulatory obstacles. A combined Paramount-Warner Bros entity would create a studio larger than industry leader Disney and merge two major television operators.
Warner Bros' board previously urged shareholders to reject Paramount's $108.4 billion bid for the entire company, including its cable television assets, citing concerns over financing certainty and the absence of a full guarantee from the Ellison family.
Paramount has argued its offer is more market-proof than Netflix's $82.7 billion proposal, whose value has fluctuated with Netflix's share price.
Lawmakers from both parties have raised concerns about further consolidation in the media industry. US President Donald Trump has said he plans to weigh in on the landmark acquisition.
