Warner Bros. Discovery sceptical of Paramount Skydance bid as board weighs repeat rejection

Warner Bros. Discovery Inc. is reportedly preparing to once again reject a takeover proposal from Paramount Skydance Corp., even after the rival media company tweaked the terms of its offer.

While the Warner Bros. Discovery board has not yet taken a final call, it is expected to meet next week to continue internal deliberations. One of the key sticking points remains the valuation: Paramount has reportedly not sweetened its bid, which Warner Bros. had earlier dismissed as inferior to a competing proposal from Netflix Inc.

Paramount is owned by billionaire Larry Ellison and his son David Ellison, a film producer who has been steadily expanding his footprint in the global media business. Since acquiring Paramount in August, the Ellisons have made multiple attempts to acquire Warner Bros. Discovery, a move that would give Paramount access to one of Hollywood’s most storied studios and significantly bolster its streaming scale.

However, the Warner Bros. board remains unconvinced about the strategic and financial merits of the deal. Directors are reportedly waiting to see whether Paramount is willing to substantially improve its offer, a step several investors believe may still be necessary to revive talks.

Beyond valuation, the board is also weighing structural risks. There are concerns that a Paramount-led transaction could limit Warner Bros. Discovery’s ability to manage its debt independently, effectively tying major financial decisions to the Ellisons’ approval. In addition, Paramount has reportedly not committed to covering the breakup fee Warner Bros. would owe Netflix if it were to walk away from that deal, adding another layer of uncertainty.

Taken together, these unresolved issues have kept the board cautious, raising the likelihood that Warner Bros. Discovery will again pass on Paramount’s approach unless the terms change meaningfully.