Warner Bros Chooses Netflix Deal, Rejects $108bn Paramount Offer
Warner Bros Discovery has decided to reject a substantial $108.4 billion takeover offer from Paramount Skydance. Instead, the entertainment giant has opted for a $72 billion agreement with Netflix, focusing on its film and streaming operations.
Warner Bros Chooses Netflix Deal Over Paramount Offer
The decision, announced on December 5, 2025, reflects the Warner Bros board’s belief that the Netflix deal better serves its long-term interests. The board’s unanimous recommendation to shareholders emphasizes the lower risks associated with the Netflix agreement compared to the Paramount bid.
Details of the Paramount Offer
- Paramount had presented an offer amounting to $108.4 billion (£80.75 billion).
- The bid was deemed “superior” by Paramount, highlighting their ambition to acquire Warner Bros.
- Paramount is supported by the Ellison family, known for their wealth and close ties to political elites.
Reasons for Warner Bros’ Rejection
In its legal filing, Warner Bros Discovery cited multiple significant risks associated with the Paramount offer. The board argued that the Netflix deal is well-funded and presents a clearer and more advantageous funding structure.
Reactions and Next Steps
Ted Sarandos, Netflix’s co-CEO, praised Warner Bros for its decision, referring to the merger as “superior” and beneficial for shareholders. Netflix reiterated that its bid carries lower regulatory risks compared to the Paramount offer.
Future Implications and Industry Concerns
Despite the current decision, the acquisition saga may continue. Paramount Skydance has indicated intentions to submit another proposal, potentially revisiting the bid for Warner Bros and its associated television networks.
If a takeover were to occur, it would likely undergo rigorous scrutiny by competition regulators in both the U.S. and Europe. A new owner for Warner Bros would significantly enhance their position in the streaming market, gaining access to valuable properties such as:
- Harry Potter
- MonsterVerse
- Friends
- HBO Max streaming service
However, the merger has faced criticism from industry groups. The Writers Guild of America has raised concerns that such a merger might lead to wage reductions and job losses, along with a decrease in content availability for audiences.
