Warner Bros Rejects Paramount Offer, Reaffirms Netflix Merger Deal

Entertainment conglomerate Warner Bros. Discovery has advised its investors to dismiss a takeover attempt from Paramount, insisting the proposal is less favourable than its existing merger agreement with Netflix.

Paramount revised its offer to include a massive personal financing guarantee from technology billionaire Larry Ellison, whose family is closely tied to the acquiring firm. Despite this adjustment, Warner Bros’ leadership stated the offer still exposed shareholders to excessive debt risk and lacked sufficient safeguards if the transaction failed.

Netflix’s agreement to acquire the studio and streaming assets marked one of the largest consolidation moves in the entertainment industry. Paramount’s competing bid, which proposed integrating cable networks such as news and entertainment channels into its own portfolio, sparked a major corporate contest that has drawn the attention of the White House.

US President Donald Trump indicated his administration would closely examine any eventual merger, signalling the likelihood of rigorous regulatory scrutiny.