Warner Bros Likely to Reject $108.4B Paramount Bid, Backs Netflix in Major Streaming Battle

Warner Bros Likely to Reject $108.4 Billion Paramount Bid and Back Netflix in Bidding War

The global entertainment industry is witnessing one of the most significant takeover battles in recent history, as Warner Bros Discovery moves closer to a decisive moment regarding its future ownership. According to reliable sources familiar with the matter, Warner Bros is increasingly likely to reject Paramount Skydance’s massive $108.4 billion all-cash offer and instead proceed with its existing agreement backed by Netflix. This development, reported on 17 December 2025, is shaping up to be a turning point in the ongoing streaming wars.

Paramount Skydance’s proposal offered Warner Bros shareholders approximately $30 per share in cash, making it financially more attractive on the surface compared to Netflix’s bid, which combines cash and stock at a lower overall valuation. Despite this apparent premium, Warner Bros’ board is focusing on long-term strategic stability rather than headline numbers alone.

Sources say the board has serious concerns about the regulatory and execution risks associated with Paramount’s hostile takeover attempt. A deal of this size would likely face intense scrutiny from U.S. and international regulators, raising the possibility of prolonged delays or even rejection. In contrast, the Netflix-backed transaction is viewed as more achievable, with fewer legal hurdles and a clearer path to completion.

Another key factor weakening Paramount’s position is a shift in its financing structure. Reports indicate that Affinity Partners, the private equity firm founded by Jared Kushner, has withdrawn its support from the Paramount consortium. This exit has raised fresh doubts about the long-term financial backing of the bid, making Warner Bros increasingly cautious about accepting the offer despite its higher cash value.

Netflix, meanwhile, has reaffirmed its commitment to the deal and has made it clear that it has no intention of backing down. Company executives believe that Warner Bros’ extensive film library, television assets, and HBO-linked brands would significantly strengthen Netflix’s global content dominance. The streaming giant is also confident it can manage regulatory challenges more effectively than its rival.

Industry analysts note that Warner Bros’ preference for Netflix reflects a broader strategic calculation. Beyond financial terms, the company is prioritizing business alignment, global scale, and future growth potential. Netflix’s established streaming infrastructure and international reach offer Warner Bros a more predictable and stable long-term outlook.

If finalized, this decision could reshape the entertainment landscape. The combination of Warner Bros’ iconic franchises and Netflix’s global platform would create a powerful force capable of redefining competition in film, television, and streaming markets worldwide. As the board prepares for its final decision, the outcome is expected to influence not only shareholders but the direction of the entire media industry for years to come.