Warner Bros Discovery Urges Rejection of Paramount's $108bn Takeover Bid
Published 16 December 2025
Highlights
- Warner Bros Discovery is set to advise shareholders to reject Paramount Skydance's $108.4bn takeover bid.
- Paramount's offer is backed by the Ellison family and RedBird Capital, but Affinity Partners has withdrawn support.
- Warner Bros previously agreed to a $72bn deal with Netflix for its film and streaming businesses.
- The proposed takeover faces potential scrutiny from US and European competition regulators.
- The Writers Guild of America opposes the merger, citing concerns over job cuts and reduced content.
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Rewritten Article
Warner Bros Discovery Urges Rejection of Paramount's $108bn Takeover Bid
Warner Bros Discovery is poised to recommend that its shareholders reject a $108.4 billion takeover bid from Paramount Skydance, according to recent reports. The media giant, which announced its intention to sell in October, had previously agreed to a $72 billion deal with Netflix for its film and streaming divisions. Paramount's offer, however, seeks to acquire the entire company, including its television networks.
Paramount's Bid and Affinity's Withdrawal
Paramount Skydance, backed by the billionaire Ellison family, launched its unsolicited bid shortly after Warner Bros' agreement with Netflix. The offer was initially supported by Affinity Partners, a private equity firm founded by Jared Kushner, former President Donald Trump's son-in-law. However, Affinity has since withdrawn its backing, citing the presence of "two strong competitors" in the race to acquire Warner Bros.
Regulatory and Industry Concerns
The potential merger is expected to undergo rigorous scrutiny from competition regulators in both the United States and Europe. A successful acquisition would grant Paramount a significant advantage in the competitive streaming market, adding Warner Bros' extensive library of films and TV shows, including popular franchises like Harry Potter and Friends, to its portfolio.
The Writers Guild of America has voiced strong opposition to the merger, arguing that it could lead to job cuts and a reduction in content available to viewers. The Guild's East and West branches have called for the merger to be blocked to protect industry workers and maintain content diversity.
Political Implications and Reactions
The involvement of Jared Kushner and the Ellison family has added a political dimension to the takeover bid. Former President Trump has distanced himself from the Ellisons, despite previous associations, and expressed dissatisfaction with CBS News, owned by Paramount, over its coverage of him.
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Scenario Analysis
The unfolding situation presents several potential outcomes. If Warner Bros Discovery successfully convinces its shareholders to reject Paramount's bid, the company may proceed with its existing agreement with Netflix, solidifying its position in the streaming market. However, should Paramount's offer gain traction, the resulting merger could reshape the media landscape, prompting further regulatory scrutiny and industry debate.
Experts suggest that the involvement of high-profile figures like Jared Kushner and the Ellison family could complicate regulatory approvals, especially given the current political climate. The outcome of this corporate battle could set a precedent for future media mergers, influencing how regulators approach similar deals in the industry.
Warner Bros Discovery is poised to recommend that its shareholders reject a $108.4 billion takeover bid from Paramount Skydance, according to recent reports. The media giant, which announced its intention to sell in October, had previously agreed to a $72 billion deal with Netflix for its film and streaming divisions. Paramount's offer, however, seeks to acquire the entire company, including its television networks.
Paramount's Bid and Affinity's Withdrawal
Paramount Skydance, backed by the billionaire Ellison family, launched its unsolicited bid shortly after Warner Bros' agreement with Netflix. The offer was initially supported by Affinity Partners, a private equity firm founded by Jared Kushner, former President Donald Trump's son-in-law. However, Affinity has since withdrawn its backing, citing the presence of "two strong competitors" in the race to acquire Warner Bros.
Regulatory and Industry Concerns
The potential merger is expected to undergo rigorous scrutiny from competition regulators in both the United States and Europe. A successful acquisition would grant Paramount a significant advantage in the competitive streaming market, adding Warner Bros' extensive library of films and TV shows, including popular franchises like Harry Potter and Friends, to its portfolio.
The Writers Guild of America has voiced strong opposition to the merger, arguing that it could lead to job cuts and a reduction in content available to viewers. The Guild's East and West branches have called for the merger to be blocked to protect industry workers and maintain content diversity.
Political Implications and Reactions
The involvement of Jared Kushner and the Ellison family has added a political dimension to the takeover bid. Former President Trump has distanced himself from the Ellisons, despite previous associations, and expressed dissatisfaction with CBS News, owned by Paramount, over its coverage of him.
What this might mean
The unfolding situation presents several potential outcomes. If Warner Bros Discovery successfully convinces its shareholders to reject Paramount's bid, the company may proceed with its existing agreement with Netflix, solidifying its position in the streaming market. However, should Paramount's offer gain traction, the resulting merger could reshape the media landscape, prompting further regulatory scrutiny and industry debate.
Experts suggest that the involvement of high-profile figures like Jared Kushner and the Ellison family could complicate regulatory approvals, especially given the current political climate. The outcome of this corporate battle could set a precedent for future media mergers, influencing how regulators approach similar deals in the industry.
