Warner Bros. has declined a $108 billion offer from Paramount

Media conglomerate confirms strategic deal with streaming service Netflix.

Warner Bros. Discovery's leadership has made a final decision to reject a large-scale acquisition offer from Paramount Skydance and proceed with the previously announced plan to sell key company assets to streaming giant Netflix.

According to official information, the offer from Paramount Skydance was valued at approximately $108 billion. However, the Warner Bros. Discovery board of directors concluded that an alternative business development scenario appears more beneficial and sustainable for the company in the long term.

Why Warner Bros. chose Netflix

In a communication to shareholders, the Warner Bros. Discovery board of directors emphasized that the terms of the agreement with Netflix are "superior" compared to Paramount's offer. The document notes that a deal with Paramount Skydance would have carried an "inadequate valuation" for the company, along with significant financial and operational risks.

Now, Paramount Skydance and its financial partners, including tech billionaire Larry Ellison (the father of company head David Ellison), must analyze the official rejection and decide whether there is merit in improving their offer. So far, no signs of revised terms from Paramount have been observed.

What the Netflix deal will look like

As part of the current plan, scheduled for implementation in the third quarter of 2026, Warner Bros. Discovery will undergo a structural business separation. This will result in the formation of a new company, Discovery Global, which will primarily include television networks.

Following this, Netflix is set to acquire Warner Bros. Studios, the HBO channel, and the HBO Max streaming service. The deal is valued at $27.75 per share. This move is seen as a strategic partnership capable of strengthening Netflix's position in the content market, while providing Warner Bros. with financial stability and access to the largest digital audience.

Netflix's reaction and next steps

On Wednesday, Netflix released an official statement welcoming the Warner Bros. Discovery board's decision and confirming its interest in finalizing the deal under the previously agreed terms.

Thus, the media conglomerate has definitively set its priority in favor of an alliance with the streaming leader, leaving Paramount Skydance's ambitious offer without the support of management.