Warner Bros. Discovery rejects Paramount Skydance’s $108.4 billion revised bid citing risks

Warner Bros. Discovery’s board of directors on Wednesday, 7 January 2026, rejected Paramount Skydance’s revised $108.4 billion acquisition proposal, citing significant risks and uncertainty associated with the buyout plan, and directed shareholders to reject the offer, according to an official company release.

In a letter addressed to shareholders, Warner Bros. Discovery stated that its board had unanimously concluded that Paramount Skydance’s revised proposal remained inadequate, particularly given the insufficient value it would deliver to shareholders. The company informed that the bid also lacked certainty around completion, creating potential risks and additional costs for shareholders should Paramount Skydance fail to close the transaction.

The board further stated that Paramount Skydance’s latest offer was inferior to Warner Bros. Discovery’s existing merger agreement with Netflix across several key parameters. Samuel A. Di Piazza Jr., chairperson of the Warner Bros. Discovery board, stated that the board had unanimously determined the Paramount offer was less favourable than the Netflix deal in terms of value, certainty and risk mitigation.

Warner Bros. Discovery said Paramount Skydance’s revised bid involved high costs, risks and uncertainties when compared with the Netflix transaction. Mint had earlier reported that Paramount Skydance submitted a challenging $108.4 billion bid to acquire Warner Bros. Discovery on 8 December 2025.

In its shareholder communication, Warner Bros. Discovery informed that under the Netflix merger agreement, shareholders would receive significant value comprising $23.25 in cash along with shares of Netflix common stock representing a target value of $4.50, based on a collar range linked to Netflix’s share price at the time of closing, with potential for future value creation.

The company also cautioned that accepting the Paramount Skydance offer would trigger substantial termination costs. Warner Bros. Discovery stated that it would be required to pay Netflix a termination fee of $2.8 billion for exiting the existing merger agreement and would also incur an additional $1.5 billion fee for failing to complete the debt exchange. The total cost to the company would amount to approximately $4.7 billion, or $1.79 per share, whereas the Netflix transaction would not impose any such costs on Warner Bros. Discovery, the company informed.

Market data showed that Warner Bros. Discovery shares were trading 0.61% lower at $28.28 during Wednesday’s premarket session on Nasdaq, compared with a previous close of $28.47, according to MarketWatch. The stock had ended Tuesday’s trading session down 0.21% at $28.47.

Shares of Paramount Skydance Corp were trading 1.12% higher at $12.64 during premarket trading on Wall Street on Wednesday, 7 January 2026. Paramount shares had closed 3.70% lower at $12.50 in the previous session, MarketWatch data showed.

Concluding its letter to shareholders, Warner Bros. Discovery stated that the board had negotiated a merger with Netflix that maximised shareholder value while limiting downside risks, and unanimously believed that proceeding with the Netflix merger was in the best interests of shareholders.