Warner Bros. Discovery (WBD) rejected a new takeover offer by Paramount Skydance on Wednesday. Warner WBD CEO David Zaslav sent out a company-wide memo on Wednesday morning, which was quoted by American Business Insider.
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Zaslav wrote to employees that WBD management conducted a “detailed analysis” of Paramount's latest offer and concluded that it still considered Netflix's offer to be superior.
“This analysis was conducted with discipline and rigor, and its results were supported by independent financial and legal advisors,” Zaslav explains to employees.
See also: The fate of TVN may turn out to be even different. Warner Bros. Discovery at the center of the game for billions
The owner of TVN rejected the giant's offer? Why? Two reasons
In a letter to shareholders on Wednesday, WBD's board outlined two main reasons for rejecting Paramount's updated offer.
First, management concluded that Paramount's offer did not offer sufficient value compared to Netflix's offer due to additional costs such as a termination fee. Second, management said there was a “lack of confidence” in Paramount's ability to complete the transaction due to “excessive debt financing.”
See also: The billionaire guarantees tens of billions. It's about taking over Warner Bros. Discovery
Paramount's latest deal was for $40.4 billion. equity, fully secured by Larry Ellison, father of Paramount CEO David Ellison and one of the richest men in the world.
In Zaslav's memo to employees, he said the company's “operating plans remain unchanged and our priorities for 2026 are clear and well-considered.”
Netflix is getting closer to acquiring Warner Bros. Discovery
In early December 2025, WBD agreed to sell a significant portion of its business, including film studios and streaming platforms, to Netflix in a deal valued at $83 billion.
Shortly thereafter, Paramount Skydance presented an offer to take over the entire company for USD 108 billion, including television channels such as CNN and Polish TVN. (if taken over by Netflix, these channels would go to a separate company – Discovery Global).
Billionaire Larry Ellison, whose son David Ellison, head of Paramount Skydance, is seeking to buy WBD, has declared personal financial guarantees of $40.4 billion. for the purpose of taking over the concern.
