Paramount challenges Netflix over Warner Bros takeover

Paramount Skydance on Thursday reiterated that its $108.4 billion takeover proposal for Warner Bros Discovery (WBD) is superior to a rival bid from Netflix, arguing that a key element of Netflix’s offer — a planned cable spinoff — is effectively worthless.

The comments come a day after the Warner Bros Discovery board rejected Paramount’s revised offer, saying it remained inadequate and carried excessive risk. Paramount’s amended proposal includes $40 billion in equity, personally guaranteed by Larry Ellison, co-founder of Oracle and father of Paramount CEO David Ellison, as well as $54 billion in debt financing.

Paramount said its offer values Warner Bros shares at $30 each for the entire company, compared with Netflix’s $27.75-per-share cash-and-stock deal, which applies only to Warner Bros’ studio and streaming assets.

Warner Bros Discovery has pushed back, arguing that Paramount’s proposal exposes shareholders to significant uncertainty. The board cited concerns over Paramount’s ability to close the deal and warned that the transaction depends on an “extraordinary amount of debt financing,” increasing the risk of failure and potential costs to shareholders.

By contrast, Warner Bros said Netflix’s proposal requires no equity financing and is supported by $59 billion in debt commitments from banks including Wells Fargo, BNP Paribas, and HSBC.

Warner Bros Chairman Samuel Di Piazza said the company is not currently in negotiations with Paramount, but remains open to discussions if Paramount can present a more compelling proposal.

Some investors disagree with the board’s stance. Pentwater Capital, the company’s seventh-largest shareholder, has said Warner Bros is making a mistake by not engaging more seriously with Paramount, highlighting ongoing divisions among shareholders over the best path forward.

The competing bids underscore intensifying consolidation pressure in the global media industry, as traditional studios and streaming platforms seek scale to cope with rising content costs and slowing subscriber growth.