Los Angeles/New York, December 17, 2025 – Warner Bros Discovery (WBD) is expected to reject Paramount Skydance’s $108.4 billion takeover bid, according to sources familiar with the matter, and remain aligned with Netflix’s $72 billion offer for the studio’s non-cable assets. The decision could be announced as early as Wednesday, potentially advising shareholders to vote against Paramount’s all-cash proposal.

This latest development adds another twist to the high-stakes bidding war for Warner Bros’ storied film and television library, which includes iconic classics such as Casablanca and Citizen Kane, alongside modern hits like Harry Potter, Friends, and other HBO Max content.

Netflix vs. Paramount: The Battle for Warner Bros

Netflix first emerged as a leading contender earlier this month with a $27 cash-and-stock bid for Warner Bros’ non-cable assets, giving the streaming giant access to one of the deepest content libraries in Hollywood. In response, Paramount CEO David Ellison went directly to Warner Bros shareholders with a $30-a-share, all-cash bid for the entire company, touting a clearer path to regulatory approval compared to Netflix’s proposal.

Paramount’s bid was financed by $41 billion in new equity from the Ellison family and RedBird Capital, combined with $54 billion in debt commitments from Bank of America, Citi, and Apollo. However, recent reports indicate that Affinity Partners, Jared Kushner’s investment firm and one of Paramount’s financing partners, is exiting the bid, raising questions about the offer’s viability.

Strategic Considerations

Warner Bros Discovery’s board is focused on maximizing shareholder value while navigating regulatory hurdles associated with large-scale media mergers. Accepting Netflix’s offer would consolidate Warner Bros’ content into a streaming powerhouse, strengthening Netflix’s position in the increasingly competitive streaming wars.

A Warner Bros Discovery spokesperson declined to comment on the matter.

The outcome of this bidding war will shape the future of Hollywood content ownership, giving the winner control over Warner Bros’ expansive library and the HBO Max streaming platform, which could provide a competitive edge in a sector dominated by streaming subscriptions and original content.

Market Implications

If Warner Bros stays committed to Netflix, it would underscore Netflix’s ambition to expand its content portfolio and further its strategy of vertical integration in media. Meanwhile, Paramount may need to reassess its approach after losing a critical financing partner, potentially affecting its regulatory strategy and shareholder outreach.

Analysts note that the battle reflects a broader trend of media consolidation, as streaming platforms and major studios vie for exclusive content to retain and grow subscriber bases. The winner of this deal will gain not only valuable intellectual property but also significant leverage in global streaming markets.