Some of Warner Bros. Discovery’s largest shareholders are divided over a sweetened takeover bid from Paramount Skydance, while the company’s board continues to back its previously agreed Netflix transaction. The differing investor opinions highlight ongoing uncertainty around Hollywood’s biggest media merger battle.
TL;DR
- Paramount Skydance offered $30 per share in cash, valuing Warner Bros Discovery (WBD) at $108.4 billion.
- Warner Bros Discovery’s board continues to favor its existing Netflix deal valued at $82.7 billion.
- Some major investors – Pentwater Capital, Gabelli Funds, and Harris Oakmark – are split in opinion.
- Paramount’s tender offer closes January 21 2026.
Paramount Skydance, led by David Ellison, has launched a hostile $30-per-share all-cash tender offer for Warner Bros Discovery, valuing the entertainment giant at about $108.4 billion.
The proposal directly challenges Warner Bros Discovery’s existing agreement with Netflix, announced in December 2025, under which Netflix would acquire the company in a deal worth approximately $82.7 billion as all-cash per-share offer ($82.7 billion refers to total deal value, tied to $27.75 per share).
Warner Bros Discovery’s board has recommended shareholders reject Paramount’s offer, describing the Netflix transaction as more certain in financing and execution. Paramount, however, maintains its offer “represents better value and faster completion.”
Investors Divided Over Value And Certainty
According to Reuters, investors remain split over which deal would serve them best.
Harris Oakmark, one of Warner Bros’ largest shareholders, said Paramount’s proposal is “not clearly superior” to the Netflix agreement and supports following through with the existing deal.
By contrast, Pentwater Capital Management sent a letter to Warner Bros Discovery’s board stating that it should not dismiss Paramount’s approach without engaging on potential improvements. Pentwater argued that shareholders deserve to understand whether Paramount can enhance its offer terms.
Veteran investor Mario Gabelli, whose Gabelli Funds hold Warner Bros stock, told Reuters that he was “likely to sell to Paramount” given the appeal of an all-cash deal. Gabelli described Paramount’s bid as “straightforward and executable.”
Large passive fund holders Vanguard, BlackRock, and State Street, which together control significant stakes, declined to comment publicly on either offer.
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Board’s Official Position
Warner Bros Discovery’s directors have reaffirmed support for the Netflix deal, saying it offers greater financial security. The company emphasized that shareholders should wait for completion of the approved Netflix transaction rather than accept Paramount’s unsolicited bid.
No additional details on regulatory reviews or financing structures have been publicly disclosed by either company beyond what has been filed. Reuters has reported only that both transactions remain subject to shareholder and regulatory review, which is standard for large-scale mergers.
Next Steps
Paramount’s tender offer remains open until January 21 2026, giving Warner Bros Discovery shareholders a limited period to tender shares if they prefer the Paramount proposal.
Until that deadline passes, Warner Bros Discovery’s board and Netflix continue continue to pursue for the previously announced merger plan. No further timeline updates have been confirmed by either side.
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