Warner Prefers Netflix Deal, Turns Down Paramount

Paramount’s bid for Warner Bros., HBO and CNN has been firmly rejected, with the Warner Bros. Discovery board urging shareholders to disregard the proposal. According to CNN, the board said in a letter to investors that Paramount’s offer — presented as a counter to an existing agreement under which Netflix would acquire Warner Bros. and HBO, but not CNN — was «inadequate» and less attractive than the Netflix deal already on the table. The board warned that Paramount’s proposal involved «an extraordinary amount of incremental debt», a structure it said would place shareholders at «more risk» and significantly weaken the company’s financial position, reinforcing its recommendation to support the Netflix-backed transaction instead.

In early December 2025, Netflix and Warner Bros. Discovery reached an agreement under which Netflix would acquire Warner’s film and television businesses, including HBO and the HBO Max streaming service, in a deal valued at roughly $72 billion in cash and stock, or about $82.7 billion including debt, with completion expected in 2026 pending regulatory approval. Just three days later, on December 8, Paramount Skydance, led by chief executive David Ellison, launched a surprise hostile counteroffer for Warner Bros. Discovery as a whole, proposing to buy the entire company for $30 per share in cash, an enterprise valuation of about $108.4 billion that would have included all cable and television assets, unlike Netflix’s more targeted bid. Paramount’s proposal was backed by significant external financing, including support from sovereign wealth funds in Saudi Arabia, Qatar and the United Arab Emirates, as well as equity from Affinity Partners, the private-equity firm led by Jared Kushner, Donald Trump’s son-in-law, a detail disclosed in regulatory filings that drew particular scrutiny. Warner Bros. Discovery’s board, however, repeatedly rejected Paramount’s overtures, arguing that the Netflix agreement offered superior value and lower execution risk, while warning that Paramount’s bid relied on a heavily debt-dependent structure that would expose shareholders to greater financial risk.

Donald Trump has publicly weighed in on Netflix’s proposed acquisition of Warner Bros. Discovery, raising concerns about the scale and influence of the combined company. Speaking to reporters in December, Trump said the deal «could be a problem» because of Netflix’s market position, while stressing that it would be subject to regulatory review. Asked directly about his own role in that process, Trump made clear that he intended to take part personally, saying «I’ll be involved in that decision», a statement that signaled heightened scrutiny of the transaction under his presidency and suggested that the fate of the deal could ultimately rest with his administration’s assessment of its competitive impact.