Warner Bros. Expected to Reject Paramount's Revised Acquisition Proposal Again

Warner Bros. Discovery (hereinafter Warner Bros.) is reported to be planning to reject Paramount Skydance's (hereinafter Paramount) revised acquisition proposal once again. Bloomberg and the Financial Times (FT) reported this on December 30 (local time), citing multiple sources.

Earlier this month, Warner Bros. finalized a deal to sell its business segments, including Netflix and the film and TV studio and streaming service HBO Max, for $72 billion (approximately 106 trillion won). This amounts to $27.75 per share.

Subsequently, Paramount declared a hostile takeover and began a tender offer to Warner Bros. shareholders at $30 per share in cash. However, Warner Bros. chose Netflix.

The Warner Bros. board rejected the proposal, stating that it was not superior to Netflix's terms and that it carried significant risk as it was not guaranteed by Oracle Chairman Larry Ellison's personal wealth. Chairman Ellison is the father of Paramount CEO David Ellison.

In response, Paramount proposed a revised plan in which Chairman Ellison would provide $40.4 billion of the acquisition funds in the form of an irrevocable personal guarantee. Additionally, the penalty for non-approval by competition authorities was raised from $5 billion to $5.8 billion, matching the amount proposed by Netflix.

Bloomberg reported, citing sources, that the Warner Bros. board is maintaining its position and waiting for Paramount to raise its acquisition price. Some shareholders are reportedly expecting Paramount to offer a higher amount.

The board is concerned that without the approval of the Ellison family, Warner Bros. may not be able to manage its debt and that there is no guarantee from Paramount regarding the $2.8 billion penalty for breaching the contract with Netflix.

The Financial Times reported that the Warner Bros. board maintains that a price increase from Paramount must precede any new negotiations.

A Paramount representative told Bloomberg that the revised proposal is a measure to bring Warner Bros. back to the negotiating table, stating that if Warner Bros. shows sincerity, Paramount is also willing to raise the price.

Paramount has extended the stock short sale deadline from January 8, 2026, to January 21.