**Warner Brothers Discovery Stands Firm Against Paramount Skyance’s Takeover Bid**
In a dramatic turn of events, Warner Brothers Discovery (WBD) is urging its shareholders to reject a new $18 billion takeover offer from Paramount Skyance. This bold stance comes despite the presence of a financial guarantee from tech billionaire Larry Ellison. WBD is sticking to its guns, claiming that a proposal from Netflix to acquire its studio and streaming division is the home run that shareholders shouldn’t overlook. According to WBD’s board, the revised bid from Paramount simply doesn’t measure up, lacking both sufficient value and certainty that Paramount can pull off the deal.
Warner Brothers made it clear in its announcement that they believe Paramount’s offer isn’t just inadequate; it’s not even in the same ballpark as Netflix’s proposal. Paramount has attempted to sweeten the deal by increasing the termination fee—the amount they would owe WBD if everything falls apart—from $5 billion to a staggering $5.8 billion. But WBD sees through the smoke and mirrors, highlighting serious doubts about the likelihood of Paramount being able to complete the merger on the terms they proposed. After all, trusting in a partnership that has been dubbed “litigious” by WBD could feel like jumping out of a plane hoping your parachute will work.
In a twist that’s practically straight out of a Hollywood script, the New York Post reported that Paramount is cooking up a “defcon one strategy”—a legal maneuver that would enable them to sue Warner Brothers if the latter refuses to accept their offer. Warner Brothers isn’t just sitting back and letting this saga unfold, though. They’ve taken to crafting sharp letters to their shareholders, pointing out the dangers of the deal, including the enormous debt financing that could shackled the deal with obligations resembling the largest leveraged buyout in history.
One of WBD’s biggest complaints about the Paramount bid focuses on its operating restrictions. These restrictions would prevent Warner Brothers from spinning off its profitable cable television assets, which could be a cash cow for the company. If the deal crumbles, shareholders could be left staring at a company tied up in red tape for up to 18 months, unable to pursue key initiatives and innovations that could benefit their bottom line.
It’s worth mentioning that in a massive transaction back in December 2025, Warner Brothers sold its studios to Netflix for an impressive $83 billion, though they wisely kept a hold of their cable businesses like CNN. It’s a reminder of the changing tides in the media landscape, where streaming services are throwing around serious cash to capture market shares. As Paramount now transitions towards a more aggressive approach to acquiring WBD, the drama continues to unfold, reminding everyone that in the world of mergers and acquisitions, the plot twists are only just beginning.
For more in-depth details about this unfolding saga, readers can click the link in the description. Stay tuned for the next exciting episode of Corporate Game of Thrones!
