Warner Bros likely to reject Paramount-Skydance bid despite Larry Ellison guarantee

While the board has not formally taken a call yet, it is likely to review the proposal in a meeting scheduled for next week, say global reports

by e4m Staff
Published: Dec 31, 2025 8:29 AM | 2 min read

Warner Bros Discovery likely to reject Paramount–Skydance bid despite Larry Ellison guarantee

Warner Bros Discovery is expected to turn down an amended takeover proposal from Paramount–Skydance, even after billionaire Larry Ellison stepped in with a personal guarantee to support the offer, according to people aware of the discussions.

As part of the revised structure, Ellison personally backed the equity component of the offer, seeking to address concerns that had surrounded the earlier version of the bid. However, the per-share cash price remains unchanged, even as Paramount increased the reverse termination fee to align with Netflix’s offer and extended the tender timeline.

While the board has not formally taken a call yet, it is likely to review the proposal in a meeting scheduled for next week, according to Reuters’ reports. The deliberations are ongoing and subject to internal confidentiality.

If the bid is rejected, Warner Bros Discovery is likely to continue progressing discussions around a competing transaction with Netflix, which involves a mix of cash and stock. Paramount’s revised proposal appears to have fallen short of shifting board sentiment, despite changes aimed at strengthening deal certainty.

Netflix’s proposal, though lower in headline valuation, is viewed by market watchers as offering greater clarity on financing and execution. Analysts have pointed to fewer structural risks in the Netflix-led transaction compared to the Paramount–Skydance proposal.

Under the Netflix agreement, Warner Bros Discovery would be required to pay a significant breakup fee if it abandons the deal, a factor that has weighed on board considerations. One of the company’s largest institutional shareholders has publicly indicated that Paramount’s revised bid does not adequately compensate for this exposure.

Paramount has maintained that its proposal would face fewer regulatory challenges and argued that a combined Warner Bros–Paramount entity would create a dominant global studio with expanded television and film operations, overtaking current industry leaders in scale.

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