In a letter to shareholders, the WBD board of directors labeled the deal as too risky. Moreover, Paramount has been accused of spreading misinformation — the company claimed that the deal was backed by the financial resources of its CEO David Ellison's family, but “this is not true.” The board strongly recommended that shareholders not sell their shares and support the previously approved agreement with Netflix.
The Paramount proposal was deemed too risky, and the WBD board pointed out deficiencies in the documents provided by the company, which, in the board's opinion, threaten the interests of shareholders and the company as a whole.
According to WBD, the Ellison family does not provide reliable financial guarantees, instead relying on “an opaque revocable trust for financing” the deal. The board indicated that such an approach cannot replace the obligations of the controlling shareholder.
After Warner Bros. Discovery's rejection, Paramount issued a statement urging shareholders to show their support by offering their shares for buyback. The statement also mentioned that the terms of the deal are more favorable, including 100% cash payments, and that the financing is secured by $41 billion in new equity from the Ellison family and RedBird Capital, as well as $54 billion in debt from major banks.
Paramount's CEO David Ellison noted that the company still considers merging with Warner Bros. relevant. In turn, Netflix expressed satisfaction with WBD's rejection of Paramount's offer and confirmed its readiness to distribute Warner Bros. films in theaters.
According to Axios, it remains unclear whether Paramount is willing to improve its offer after losing Affinity Partners, Trump’s son-in-law Jared Kushner, as an investor on December 16. Sources claim that Affinity Partners' involvement in the proposal was not significant but could have created the illusion of a possibility to bypass regulatory scrutiny.
Paramount's tender offer will be valid until January 8, 2025. If the company can convince 51% of WBD shareholders to sell their shares, it will gain control over the organization.
On December 5, 2025, Netflix announced the acquisition of Warner Bros. at a price of $27.75 per share, totaling $82.7 billion in assets. The announcement mentioned that Netflix is also acquiring the streaming platforms HBO and HBO Max. However, the next day, the WSJ reported that the deal requires approval from the Trump administration, which maintains ties with David Ellison. The newspaper also reported that the U.S. president may attempt to pressure antitrust authorities to block the deal in favor of Paramount.
Financial Times later noted that there are concerns in Hollywood about potential budget cuts and job losses due to the deal, and the Writers Guild of America joined in criticizing Netflix for its reluctance to release films widely, demanding that the deal be blocked.
