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, Jan. 7, 2026, rejected Paramount Skydance’s revised $108.4 billion offer, citing risk concerns in the company’s acquisition plan, prompting investors to reject the offer, according to the official statement.

Also Read | Paramount, Warner Bros. Offered $108.4 billion to buy Discovery

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

The company also stated that Paramount Skydance’s revised offer of $108.4 billion created a “lack of certainty” in its ability to complete the offer. Warner Bros. also said that if the company participating in the tender could not complete the offer, the offer would create risks and costs for shareholders.

Warner Bros. Discovery chairman Samuel A. Di Piazza, Jr. “The Board unanimously determined that Paramount’s latest proposal was inferior to our merger agreement with Netflix in several key areas,” he said.

Paramount offers ‘Inadequate Value’

Warner Bros claimed Paramount’s revised offer provided ‘insufficient value’, citing high costs, risks and uncertainties compared to the Netflix deal. Mint Previously, Paramount announced that Skydance would premiere with Warner Bros. on December 8, 2025. He reported that he made a tough bid of $108.4 billion to buy Discovery.

Also Read | Mystery wanted to buy ‘American media company’ Warner Bros Discovery for $25 billion

“WBD shareholders will realize significant value in Netflix common stock, which represents $23.25 in cash and a target value of $4.50 based on the Netflix stock price’s collar range at closing and has the potential to create future value,” the company said in its shareholder letter.

If shareholders approve the Paramount offer, Warner Bros. will have to pay Netflix a $2.8 billion termination fee for backing out of the current merger deal. The company will also pay a $1.5 billion fee for failing to complete the debt swap.

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

Share price today

Warner Bros. shares traded at $28.28 in Wednesday’s Nasdaq premarket session, down 0.61% from $28.47 at the previous U.S. market close, according to MarketWatch data.

Also Read | Warner Bros. shares rise 7% after Paramount attempts hostile bid

Warner Bros. Discovery’s shares closed down 0.21% at $28.47 after Tuesday’s stock market session. Paramount Skydance Corp. Its shares traded up 1.12% at $12.64 in the pre-market trading session on Wall Street on Wednesday, January 7, 2026.

Paramount stock closed at $12.50, down 3.70% from the previous market close, according to MarketWatch data.

“Your Board of Directors has negotiated a merger with Netflix that maximizes value while reducing downside risks, and we unanimously believe that the Netflix merger is in your best interest. We are focused on advancing the Netflix merger in a way that will deliver you impressive value,” Warner Bros said at the end of its shareholders’ letter.

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