Warner Bros Rejects Paramount's Buyout Bid Amid Netflix Interest
Warner Bros Discovery dismisses Paramount's acquisition offer as 'illusory' while Netflix emerges as preferred buyer in heated studio auction battle.
The battle for Warner Bros has intensified as the studio's board prepares to turn down Paramount Skydance Corp's acquisition proposal. According to recent reports, Warner Bros Discovery executives have labeled Paramount's buyout attempt as "illusory" and are leaning toward Netflix as a more viable purchaser.
The rejection stems from concerns about Paramount's financing structure, which relies heavily on investors from Saudi Arabia, Qatar, and Abu Dhabi. These international funding sources have raised red flags for Warner Bros Discovery leadership, who view the arrangement as a significant risk factor.
Paramount Defends Its Financial Position
Responding to the criticism, Paramount representatives have pushed back against Warner Bros' assessment. The company insists it has "airtight financing" and dismisses concerns about its offer as "absurd." Despite these assurances, Warner Bros Discovery's board remains unconvinced about the deal's viability.
In a statement to shareholders, the Warner Bros Discovery board explained that Paramount's proposal "provides inadequate value and imposes numerous, significant risks and costs on WBD." The final decision now rests with shareholders, who must weigh the competing offers.
Netflix's Strategic Advantage
Netflix's interest in acquiring Warner Bros' film and television studios, along with HBO and HBO Max streaming operations, has gained momentum. The streaming giant's existing relationship with director Zack Snyder, who has produced multiple projects for the platform including Rebel Moon and Army of the Dead, could play a crucial role in future content strategies.
Industry observers note that Netflix's acquisition could potentially revive the Snyderverse, the DC Extended Universe framework that featured Henry Cavill's Superman, Ben Affleck's Batman, and Gal Gadot's Wonder Woman. Fans have long hoped for such a revival, viewing Netflix as the ideal platform to continue these storylines.
Multiple Bidders in the Mix
The auction process, which began in October 2025, has attracted several major players beyond Netflix and Paramount. Comcast Corp has also emerged as a potential buyer, creating a competitive environment that could drive up the final sale price.
Some Warner Bros Discovery shareholders are reportedly considering accepting Paramount's $30 per share offer despite the board's recommendation against it. This split among stakeholders adds another layer of complexity to an already complicated transaction.