Warner Bros rejected Paramount's ‘too low’ $20/share takeover offer, says report
Warner Bros Discovery has reportedly rejected Paramount’s initial takeover offer of $20 per share, deeming it too low. Sources told Bloomberg David Ellison's bid would either be increased or Paramount could directly appeal to shareholders.
Film and television giant Warner Bros Discovery Inc. has reportedly rejected the initial takeover offer proposed by David Ellison led Paramount Skydance for being “too low”, Bloomberg reported citing sources.
Paramount’s offered around $20 per share in recent weeks, the sources added.
Paramount and Warner Bros. spokespeople declined to comment, as per the report.
What can Paramount do next?
As per the report, Paramount has several options, including upping its bid, finding an additional partner for finance or appealing directly to shareholders, they added.
This comes after CNBC recently reported that the two companies were in talks, but price was a sticking point. It also noted that Paramount could make its offer public to shareholders to pressure Warner Bros.
Warner Bros. shares closed at $17.10 on October 10, giving the company a market value of $42.3 billion. Paramount shares were at $17 a share, valuing it at $18.6 billion.
Notably, David Ellison is the son of billionaire Larry Ellison. He took over Paramount, the parent of CBS, Nickelodeon, MTV and the namesake movie studio, in August 2025 after completing an $8 billion merger with his film production company Skydance Media.
Paramount has been in talks with alternative asset manager Apollo Global Management about backing its bid, Bloomberg News reported last week.
What are Paramount's plans for Warner Bros?
Ellison said at the Bloomberg Screentime conference last week that he couldn’t comment on Warner Bros. specifically, but he did make the case for more industry mergers.
Warner Bros. plans to split into two businesses, one focused on cable TV and the other on streaming and studios, in a deal expected to be completed next year.
Warner Bros. CEO David Zaslav believes he can get a hefty premium for his streaming and studios businesses once they’re separated from the debt-laden cable networks, Bloomberg News previously reported. To clinch a deal, Ellison will have to convince him that he isn’t leaving money on the table by selling before that happens.
(With inputs from Bloomberg)
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