Warner Bros. Discovery rejects Paramount's $108.4 billion revised bid over risk concerns in buyout plan — Details

Warner Bros. Discovery's board of directors on Wednesday, 7 January 2026, rejected Paramount Skydance's $108.4 billion revised bid, citing risk concerns in the company's buyout plan, directing investors to reject the offer, according to the official release.

In a letter to the shareholders, Warner Bros said that the board has unanimously decided that Paramount Skydance's offer remains ‘inadequate, particularly given the insufficient value it would provide.’

The company also cited that Paramount Skydance's $108.4 billion revised bid poses a “lack of certainty” in its ability to complete the offer. Warner Bros also said that the offer creates risk and costs for shareholders if the bidding company fails to complete the offer.

“The Board unanimously determined that the Paramount’s latest offer remains inferior to our merger agreement with Netflix across multiple key areas,” said Samuel A. Di Piazza, Jr., Chairperson of Warner Bros. Discovery board.

Paramount offers ‘Insufficient Value’

Warner Bros claimed that Paramount's revised offer was providing ‘insufficient value,’ citing the high costs, risks and uncertainties in comparison to the Netflix deal. Mint reported earlier that Paramount Skydance placed a challenging bid of $108.4 billion, looking to acquire Warner Bros. Discovery on 8 December 2025.

“WBD shareholders will receive significant value with $23.25 in cash and shares of Netflix common stock representing a target value of $4.50 based on a collar range in the Netflix stock price at the time of closing, which has future value creation potential,” the company said in its shareholder letter.

If the shareholders approve the Paramount offer, then Warner Bros will be mandated to pay Netflix a $2.8 billion termination fee for abandoning the existing merger agreement. The company will also incur a $1.5 billion fee for failing to complete the debt exchange.

“The total cost to WBD would be approximately $4.7 billion, or $1.79 per share,” said Warner Bros in its letter. “In comparison, the Netflix transaction imposes none of these costs on WBD.”

Share price today

Warner Bros stock was trading 0.61% lower at $28.28 during Wednesday's premarket session on Nasdaq, compared to $28.47 at the previous US market close, according to MarketWatch data.

Shares of Warner Bros. Discovery closed 0.21% lower at $28.47 after Tuesday's stock market session. While Paramount Skydance Corp. stock was trading 1.12% higher at $12.64 during the premarket trading session on Wall Street on Wednesday, 7 January 2026.

Paramount stock closed 3.70% lower at $12.50, compared to the previous market close, MarketWatch data showed.

“Your Board negotiated a merger with Netflix that maximises value while mitigating downside risks, and we unanimously believe the Netflix merger is in your best interest. We are focused on advancing the Netflix merger to deliver its compelling value to you,” said Warner Bros in conclusion of the shareholders' letter.

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Disclaimer: This story is for educational purposes only. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.