WBD says 93 per cent of shareholders reject Paramount’s bid in favour of Netflix deal

Washington: Warner Bros. Discovery has slammed Paramount Skydance’s latest $30/share takeover bid, claiming over 93 per cent of its shareholders have rejected what it called an “inferior scheme” in favour of the $83 billion Netflix deal.

Paramount, backed by David Ellison, his father Larry Ellison and partners including RedBird Capital and Middle Eastern sovereign wealth funds, last week extended its cash offer for WBD shareholders until 20 February. The media company is also pushing to win support at a special shareholder meeting expected in April.

WBD’s board has turned down Paramount’s advances eight times, insisting the Netflix merger is superior. “Our shareholders agree, with more than 93 per cent rejecting Paramount’s inferior scheme. We remain confident of regulatory approval and the tremendous value our deal with Netflix will deliver,” the company said.

Netflix sweetened its deal on 20 January, switching to an all-cash $27.75/share offer to quash Paramount’s argument that its bid was superior because it was cash-only. The WBD-Network deal is set to close 12-18 months after the original 4 December 2025 agreement, pending regulatory clearance and shareholder approval, following WBD’s planned spin-off of Discovery Global, including CNN, TNT, TBS, HGTV and Discovery+.

Paramount has sued WBD board members to force disclosure of financial details for Discovery Global, claiming shares would be worthless. WBD countered with projections showing Discovery Global’s implied equity value at $2.41–$3.77 per share, and potential acquisition value at $4.63–$6.86 per share.

Paramount insists WBD is still hiding key debt figures for Discovery Global, pegged at $17 billion for June 2026. Netflix has agreed to reduce the debt burden by $260 million. Paramount warns any reallocation of debt back to WBD’s streaming and studios business would cut shareholder payouts dollar-for-dollar under the Netflix deal.

Netflix plans to fund the acquisition with $20 billion cash and $52 billion debt, having secured $42.2 billion in financing from Wells Fargo, BNP and HSBC. WBD would retain $10.7 billion in net debt post-sale.

With Paramount reluctant to raise its $30/share bid and WBD shareholders overwhelmingly backing Netflix, the battle looks set to be a drawn-out, bruising slugfest — and one the Ellisons may struggle to win.