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Warner Bros. Discovery Board Rejects Paramount’s $108 Billion Hostile Bid, Reaffirms Netflix Deal

Shareholders next decide on Paramount’s $30 tender, with the board emphasizing financing certainty in Netflix’s binding agreement.

Overview

  • Paramount’s all-cash tender at $30 per share remains open to investors through at least Jan. 8, with withdrawal rights and an option to extend.
  • The board said Paramount ‘consistently misled’ investors about a full Ellison family backstop, noting the use of a revocable trust and raising concerns about Paramount’s credit profile and proposed $9 billion in synergies.
  • Netflix’s binding offer values WBD at $27.75 per share through $23.25 in cash plus $4.50 in Netflix stock, includes committed bank financing, and excludes cable networks slated for a spinoff.
  • Deal protections are sizable: WBD would owe Netflix a $2.8 billion breakup fee if it pivots, while Netflix would pay $5.8 billion if regulators block the transaction; a shareholder vote on the Netflix merger is expected in spring or early summer 2026.
  • Both paths face intense scrutiny, with questions over sovereign fund backing and EllisonTrump ties for Paramount and bipartisan antitrust concerns for Netflix, as some major shareholders signal openness to a revised Paramount bid.