NEW YORK, Jan 4, 2026, 20:05 ET
- Paramount Skydance insiders are joking about what “excuse” Warner Bros Discovery will cite next to rebuff its bid, the New York Post reported.
- Paramount’s amended $30-a-share cash offer is backed by a $40.4 billion Larry Ellison guarantee and runs through Jan. 21.
- Warner Bros Discovery has said it is not changing its recommendation to pursue a deal with Netflix while it reviews Paramount’s tender offer.
Paramount Skydance is running out of patience with Warner Bros Discovery’s repeated refusals to engage on its takeover approach, the New York Post reported late Saturday. 1
Warner’s board is expected to meet soon to weigh Paramount’s amended proposal against a rival cash-and-stock agreement with Netflix valued at about $82.7 billion, according to a person familiar with the matter. Under the terms of the Netflix deal, Warner would face a $2.8 billion breakup fee if it walks away. 2
The timing matters because Paramount is using a tender offer — a bid to buy shares directly from shareholders — to pressure the board ahead of key deadlines. A fresh rejection would leave Paramount little room to keep its $30-per-share offer intact without raising the price or changing terms.
Paramount said in a Dec. 22 statement that it had amended its offer to address Warner’s financing concerns, including an “irrevocable personal guarantee” from Oracle founder Larry Ellison for $40.4 billion of equity financing. It also said it would lift its regulatory reverse termination fee — a payment owed if regulators block the deal — to $5.8 billion. “Our $30 per share, fully financed all-cash offer … continues to be the superior option,” Paramount CEO David Ellison said. 3
Warner said the same day it had received the amended tender offer and would review it with independent advisers under the terms of its agreement with Netflix. The board said it was not modifying its recommendation in favor of the Netflix transaction and advised shareholders not to take any action for now. 4
A tender offer filing with the U.S. Securities and Exchange Commission showed Paramount extended the expiration date to 5 p.m. New York time on Jan. 21, 2026, from Jan. 8. The filing said 397,252 shares had been tendered and not withdrawn as of Dec. 19, and that the offer is not subject to a financing condition. 5
Variety reported on Jan. 1 that Warner’s board was poised to reject Paramount’s amended offer and “stay the course” with Netflix, citing earlier Bloomberg reporting that the board would meet next week to formally vote on a response. Variety also said Netflix’s deal does not include Warner’s linear cable channels — such as CNN and TNT — which are slated to be spun into a separate company next year, while Paramount’s bid would take all of Warner. 6
The contest highlights a broader scramble for scale in Hollywood as legacy media groups seek heft against deep-pocketed streaming rivals. Netflix is already the sector’s dominant subscription platform, while traditional players are juggling shrinking cable audiences and rising content costs.
But Paramount’s path is far from clear. Any switch would force Warner to weigh the cost of terminating the Netflix deal against the certainty of an all-cash bid, and a combination of two major film-and-television groups would invite tough regulatory scrutiny that could stretch timelines and inflate fees.
For now, shareholders are left with a choice between a negotiated deal backed by Netflix and a hostile cash bid that is still trying to win over the board. The next recommendation from Warner’s directors will determine whether Paramount escalates — or backs away.
