Warner Bros. Discovery Board Unanimously Rejects Paramount’s $30-Per-Share Bid

Paramount continues to push its hostile takeover offer despite board rejection, with the streaming company insisting its all-cash bid remains superior to Netflix’s competing deal.

On January 7, 2026, Warner Bros. Discovery’s board of directors unanimously recommended that shareholders reject Paramount’s amended tender offer, reaffirming their support for Netflix’s previously agreed merger. The decisive move comes after Paramount submitted a revised $30-per-share bid in late December, which included a personal guarantee from billionaire Larry Ellison covering $40.4 billion of the equity financing.

The Battle Over Value

The core disagreement centers on how to evaluate competing offers. Paramount claims its $30-per-share all-cash offer is easier to value and superior to Netflix’s $27.75 per-share deal, which includes a combination of cash, Netflix stock, and shares in a newly created cable company called Discovery Global.

Warner’s board counters that Netflix’s offer provides greater certainty and less risk, particularly given the massive debt burden—$54 billion—that Paramount requires to finance its takeover. The board also cited concerns about the company’s ability to incur billions in costs, including a $2.8 billion break-up fee if the Netflix deal were abandoned.

“Our binding agreement with Netflix will offer superior value at greater levels of certainty, without the significant risks and costs Paramount’s offer would impose on our shareholders,” said Samuel A. Di Piazza Jr., chair of the Warner Bros. Discovery board.

What’s At Stake

The two offers cover different assets. Netflix agreed to acquire HBO, HBO Max, and Warner Bros. film and television studios—leaving cable channels like CNN, HGTV, TBS, and Animal Planet to be spun off into a separate entity. Paramount’s bid seeks to acquire the entire company.

The Shareholder Vote

Paramount shareholders have until January 21, 2026 to tender their Warner shares, though Paramount could extend this deadline. Despite the board’s unanimous rejection, the company appears confident that investors will evaluate the offers independently and favor its all-cash proposition over Netflix’s mixed consideration package.

“Our offer clearly provides WBD investors greater value and a more certain, expedited path to completion,” said Paramount CEO David Ellison in a statement.

The acquisition battle highlights the ongoing consolidation in the streaming industry, with major players competing aggressively to control valuable content libraries and distribution networks.

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