The board of Warner Bros. Discovery has formally rejected a $108.4 billion hostile takeover proposal from Paramount Skydance, telling shareholders that the offer lacks credible financial backing and carries unacceptable risk.
In a statement released Wednesday, the board said Paramount’s all-cash bid of $30 per share failed to provide sufficient proof that financing was firmly secured. Directors cited concerns over the structure and transparency of the funding, saying it did not offer the certainty required for a transaction of this size.
Warner Bros. Discovery reaffirmed its support for an existing merger agreement with Netflix, which values the company at $27.75 per share. The board described that deal as binding and fully financed, with clearer commitments that reduce execution and regulatory uncertainty. Shareholders were urged to reject the Paramount proposal ahead of a forthcoming vote.
The rejection comes amid weakening momentum behind Paramount’s bid. A key financial backer recently withdrew from the effort, further undermining confidence in the offer and its ability to close. Paramount has not publicly responded to the board’s decision.
Shares of Warner Bros. Discovery and Paramount both slipped following the announcement, while Netflix shares edged higher, reflecting investor reaction to the board’s endorsement of the streaming giant’s deal.
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