Warner Bros. Discovery Rejects Paramount’s Takeover Offer

Warner Bros. Discovery has reportedly turned down a takeover bid from Paramount Skydance valued at about $20 per share, deeming the offer too low, according to a report from Bloomberg on Saturday, citing anonymous sources. Despite the rejection, discussions between the two companies are said to be ongoing as Paramount prepares a revised proposal.

The proposed $20-per-share offer fell short of valuations suggested by some analysts and sources regarding the worth of the company’s components, prompting the Warner Bros. Discovery board to reject the bid, according to sources.

Paramount Skydance’s offer sought to acquire Warner Bros. Discovery in its entirety. The bid follows Paramount’s recent acquisition by Skydance Media, which is backed by billionaire Larry Ellison and his family. The potential merger would bring together major entertainment assets, including HBO, CNN, and the Warner Bros. film studio, consolidating two of Hollywood’s major media companies.

Larry Ellison, among the world’s wealthiest individuals, is committed to assisting his 42-year-old son, David Ellison, who leads Skydance, in the attempt to acquire Warner Bros. Discovery. Two people familiar with the matter said that Ellison has agreed to help finance the effort, underscoring the family’s commitment to pursuing the deal.

Some analysts think that Paramount’s pursuit of acquiring Warner Bros. Discovery may eventually succeed, particularly considering the company’s current state. Following Discovery’s merger with AT&T’s WarnerMedia to form Warner Bros. Discovery, the company was left with substantial debt. CEO David Zaslav and his team have implemented significant cost-cutting measures over the last three years and have reduced billions of dollars in debt, but the company still holds roughly $35 billion of debt on its books.

Following reports of Paramount’s interest, Warner Bros. Discovery’s stock surged by over 30%, hitting a peak of $20 per share, though it ultimately closed on Friday at $17.10, down 3.2%. Meanwhile, Paramount’s stock increased by approximately 12%, with shares closing on Friday at $17, down 5.4%.

Warner Bros. Discovery currently holds an estimated market value of about $42 billion. By contrast, Paramount’s market capitalization stands at approximately $18.5 billion.

In a separate development, Warner Bros. Discovery previously announced plans to split into two entities—Warner Bros. and Discovery Global—by April 2026. Under that proposal, Warner Bros. would encompass HBO, HBO Max, and the Warner Bros. film and television studios, with current CEO David Zaslav at the helm. Discovery Global would be made up of the linear cable television channels.

While Paramount Skydance’s initial offer was rejected, ongoing negotiations suggest that a higher bid could still bring the companies closer to one of the largest media mergers in recent years.