Warner Bros. Discovery has made it clear that it will not be swayed by Paramount's $108.4 billion offer to purchase its streaming and movie studios businesses, calling the bid "illusory." In a presentation to shareholders, the company stated that the offer requires an "extraordinary amount of debt financing" and other terms that make it less likely to be completed than the pending Netflix merger.
The Warner Bros. board has unanimously voted to reject Paramount's offer, citing concerns over its high level of debt financing and lack of flexibility for the company. In contrast, the company said that Netflix's deal offers a more favorable arrangement, with a market capitalization of approximately $400 billion and an estimated free cash flow of over $12 billion for 2026.
Paramount, which recently completed an $8 billion merger with Skydance, had submitted its bid days after Warner Bros. struck a deal to sell its streaming and movie studios businesses to Netflix. The company's chairman, Samuel Di Piazza Jr., acknowledged that Larry Ellison's son, David Ellison, had stepped up to the table with an offer, but ultimately concluded that it was not sufficient.
Despite some speculation that Paramount could raise its offer to sweeten the deal further, Warner Bros. Discovery remains committed to completing its merger with Netflix. The company has set a deadline of January 21 for shareholders to tender their shares under the Paramount offer, and is now pushing back against the prospect of a prolonged bidding war.
Meanwhile, Pentwater Capital Management, one of Warner's top shareholders, has called on the board to engage in further discussions with Paramount, warning that failure to do so could lead to a vote against the merger. However, Di Piazza suggested that the company should continue to prioritize its deal with Netflix, which he described as "superior" and providing more flexibility for the company.
As the standoff between Warner Bros. Discovery and Paramount continues, one thing is clear: only one deal will emerge victorious. With Netflix's offer still on the table, it remains to be seen whether Paramount can come up with a compelling alternative that will change the course of events.
The Warner Bros. board has unanimously voted to reject Paramount's offer, citing concerns over its high level of debt financing and lack of flexibility for the company. In contrast, the company said that Netflix's deal offers a more favorable arrangement, with a market capitalization of approximately $400 billion and an estimated free cash flow of over $12 billion for 2026.
Paramount, which recently completed an $8 billion merger with Skydance, had submitted its bid days after Warner Bros. struck a deal to sell its streaming and movie studios businesses to Netflix. The company's chairman, Samuel Di Piazza Jr., acknowledged that Larry Ellison's son, David Ellison, had stepped up to the table with an offer, but ultimately concluded that it was not sufficient.
Despite some speculation that Paramount could raise its offer to sweeten the deal further, Warner Bros. Discovery remains committed to completing its merger with Netflix. The company has set a deadline of January 21 for shareholders to tender their shares under the Paramount offer, and is now pushing back against the prospect of a prolonged bidding war.
Meanwhile, Pentwater Capital Management, one of Warner's top shareholders, has called on the board to engage in further discussions with Paramount, warning that failure to do so could lead to a vote against the merger. However, Di Piazza suggested that the company should continue to prioritize its deal with Netflix, which he described as "superior" and providing more flexibility for the company.
As the standoff between Warner Bros. Discovery and Paramount continues, one thing is clear: only one deal will emerge victorious. With Netflix's offer still on the table, it remains to be seen whether Paramount can come up with a compelling alternative that will change the course of events.
Warner Bros. Discovery thinks $108.4 billion is "illusory" because of the debt financing... but honestly, who doesn't love a good high-stakes gamble? 
Paramount's all in, and they're not backing down just 'cause Netflix offers more flexibility. It's like, do they really think people are that gullible?
Samuel Di Piazza Jr. saying his offer is "superior"... yeah, until someone puts the numbers out and shows otherwise. I mean, I'm no economist, but even I know what a good deal looks like.
i'm surprised paramount even thought they had a shot at this... 108.4 billion is just crazy talk 
warner bros discovery knows what they want, which is to get out of this streaming business and focus on their core thing... news, sports, and gaming 
netflix deal seems way more attractive to me, like 400 billion market cap? that's not some 'illusory' offer 
Paramount's offer was already pretty high, so it's hard to see how they'd raise it without, like, taking on way too much debt or something. 
... it's like they're trying to make us shareholders' lives more complicated than necessary 
. But seriously, can't we just have a clear winner here? The more I think about it, the more I'm like "debt financing" sounds like code for "we're in way over our heads" 
. Anyway, only one deal will emerge victorious, yeah right... it's anyone's guess at this point 
.
david ellison should have known better 
let's be real, netflix is the clear winner here 
can't wait to see what happens next! 
. But Warner Bros. Discovery seems pretty confident in their deal with Netflix 
. Me, I'd want to see some numbers on how much debt financing they're talking about... that sounds sketchy 
. Netflix is still the one with the big bucks and all that 
. One thing's for sure, it's gonna be a wild ride! 
i mean walt disney's deal with netflix is insane they're basically offering like 400 billion USD and over 12 billion in free cash flow for 2026 that's a game changer 
. If they can come up with a better offer, maybe we'll see some price competition 
. But considering the debt financing aspect, I'm kinda leaning towards Warner Bros. making the right call 
. What do you guys think?
. No need for bidding war, let's get this Netflix party started! 
maybe they should think about the future of their company instead of just trying to make a bigger offer