Warner Bros. Discovery Inc. has remained skeptical about a revised takeover proposal from Paramount Skydance Corp. and has been preparing to potentially reject the bid once again, even after the rival media company has adjusted certain terms of its offer.
The Warner Bros. Discovery board has not yet taken a final decision and has been expected to meet next week to continue its internal deliberations, as per media reports. However, valuation has continued to be a key sticking point, with Paramount having reportedly not sweetened its offer, which Warner Bros. Discovery has earlier dismissed as inferior to a competing proposal from Netflix Inc.
Paramount has been owned by billionaire Larry Ellison and his son David Ellison, a film producer who has been steadily expanding his footprint in the global media business. Since acquiring Paramount in August, the Ellisons have made multiple attempts to acquire Warner Bros. Discovery, a move that has been expected to give Paramount access to one of Hollywood’s most storied studios and significantly bolster its streaming scale.
The Warner Bros. Discovery board has remained unconvinced about the strategic and financial merits of the proposed deal. Directors have been waiting to see whether Paramount has been willing to substantially improve its offer, a step that several investors have believed may still be necessary to revive discussions.
Beyond valuation, the board has also been weighing structural risks associated with the proposal. Concerns have persisted that a Paramount-led transaction could limit Warner Bros. Discovery’s ability to manage its debt independently, potentially tying major financial decisions to the Ellisons’ approval. Additionally, Paramount has reportedly not committed to covering the breakup fee Warner Bros. Discovery would owe Netflix if it were to walk away from that deal, adding further uncertainty.
Taken together, these unresolved issues have kept the board cautious and have increased the likelihood that Warner Bros. Discovery will again pass on Paramount’s approach unless the terms change meaningfully.
