Warner Bros. Discovery has once again rejected a takeover offer from Paramount Skydance, choosing instead to stand by its merger agreement with Netflix.
The company's board announced Wednesday that Paramount Skydance's revised bid still falls short and carries too much financial risk compared with Warner's existing deal.
In a statement, the board said its agreement with Netflix offers "superior value at greater levels of certainty" and avoids the heavy debt and uncertainty tied to Paramount Skydance's proposal, CBS News reported.
Warner Bros. Discovery also warned that Paramount's offer would place a major debt burden on the combined company, something the board believes could hurt shareholders in the long run.
This marks the second time Warner Bros. Discovery has turned down a hostile bid from Paramount Skydance.
The media company, home to famous franchises like "Harry Potter," "Game of Thrones," and "Friends," has become the center of a high-stakes battle as rivals compete to gain control of its valuable film and television library.
Paramount Skydance, which owns Paramount Pictures along with cable channels such as Nickelodeon and Comedy Central, recently returned with a revised offer after being rejected in December.
JUST IN - Warner Bros Discovery unanimously rejects Paramount Skydance's latest $108.4 billion hostile bid, reaffirming its commitment to Netflix's $82.7 billion offer — Reuters pic.twitter.com/JizQFGce0l
— Disclose.tv (@disclosetv) January 7, 2026
Warner Board Rejects Paramount's $108B Offer
That updated proposal included a personal guarantee from Oracle co-founder Larry Ellison, who is the father of Paramount Skydance CEO David Ellison.
According to CBC, the guarantee would back $40.4 billion in equity financing, a move meant to ease concerns about funding.
Even with those changes, Warner's board was not convinced. In a letter to shareholders, the company described Paramount's $30-per-share offer—valued at about $108 billion—as a risky leveraged buyout.
The board said the plan relies on "an extraordinary amount of debt financing," which increases the chance the deal could fail or strain the company after closing.
By contrast, Warner Bros. Discovery continues to support its $82.7 billion merger with Netflix. Under that agreement, Netflix would acquire Warner's HBO network along with its streaming and studios business for $27.75 per share.
The deal includes both cash and Netflix stock, and Warner's cable division would be spun off into a separate company before the merger is completed.
Netflix welcomed the board's decision, saying it supports Warner's ongoing commitment to their agreement.
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