Paramount’s Warner Bros Offer Declared Insufficient by Major Investor – December 2025

Paramount’s New Offer for Warner Bros Deemed Insufficient by Major Investor

On 23 December 2025, a major investor in Warner Bros. Discovery (WBD) stated that Paramount’s revised acquisition offer remains insufficient, casting renewed uncertainty over one of the entertainment industry’s largest potential deals worth billions of dollars.

Paramount had attempted to strengthen its bid for Warner Bros., but Harris Oakmark, the fifth-largest shareholder of WBD, expressed dissatisfaction. The investor argued that in light of current market conditions and the true valuation of Warner Bros., Paramount’s latest cash offer of $30 per share is still inadequate to secure shareholder approval.

The revised offer values the deal at approximately $108.4 billion. Paramount sought to make the bid more attractive by including $40.4 billion in personal financial guarantees from Oracle co-founder Larry Ellison and increasing the reverse termination fee to $5.8 billion in case the agreement falls through. Despite these enhancements, major investors believe the offer does not yet match shareholder expectations or the competitiveness of rival deals.

Industry analysts note that Paramount faces stiff competition from Netflix, which has already negotiated an alternative deal with WBD offering a combination of cash and Netflix stock per share. Investors argue that Paramount must improve its proposal with additional financial incentives, stronger backing, and clearer funding commitments to compete effectively.

Meanwhile, the Warner Bros. Discovery Board of Directors has described Paramount’s offer as “deficient and risky,” recommending shareholders consider Netflix’s proposal instead. According to the board, Netflix’s bid is more stable, reliable, and value-accretive for shareholders, while Paramount’s cash-only offer presents financial uncertainties and potential risks.

This situation highlights a high-stakes battle in the streaming and entertainment asset market, where historic studios, HBO, and other valuable licenses are at the center of strategic competition. Analysts point out that Paramount and Netflix are both striving to acquire Warner Bros.’ extensive intellectual property and streaming assets to strengthen their global market position.

Given the current dynamics, Paramount may need to enhance its offer further, adding financial incentives or improved terms, to gain the support of major shareholders. Failure to do so could result in Paramount losing ground to Netflix, potentially reshaping one of the largest media mergers in history.