Warner Bros (WBD) Stock Plunges 2.73% as Board Reportedly Rejects Paramount’s $108B Mega-Bid

Hollywood's biggest deal just got the Hollywood ending nobody expected—a flat rejection.

The Plot Twist Nobody Saw Coming

Warner Bros Discovery's board reportedly slammed the door on a monumental $108 billion acquisition offer from Paramount Global. The market's reaction was immediate and brutal, sending WBD shares tumbling 2.73% in a single session. That's a multi-billion-dollar 'no, thanks' echoing through studio lots and trading floors alike.

Deal-Making in the Streaming Wars

This wasn't just any offer. A $108 billion bid represents a seismic attempt to consolidate power in an industry scrambling for scale against tech giants. Rejecting it signals a defiant, go-it-alone strategy from WBD's leadership—a high-stakes gamble that their own content library and direct-to-consumer path will outperform the benefits of a combined empire. It's a bet that has Wall Street analysts frantically revising their models and scripts.

When 'No' Costs You Billions

The immediate stock decline paints a clear picture: the market hates uncertainty more than it loves ambition. Shareholders are now left holding the bag, forced to trust a vision that just bypassed a guaranteed premium. It's the classic finance conundrum—turning down a bird in the hand for two in a bush that may or may not be on fire. Sometimes, the most expensive word in business isn't 'acquisition'; it's 'next.'

TLDRs;

• Warner Bros board set to reject Paramount’s $108B offer, raising uncertainty for shareholders.
• Netflix bids $72B for Warner Bros’ non-cable assets, intensifying acquisition competition.
• Regulatory scrutiny expected to complicate any potential mega-deals in the entertainment sector.
• Discovery Global’s valuation remains central to comparing Paramount and Netflix takeover proposals.

Shares of Warner Bros Discovery (WBD) fell 2.73% on Tuesday after reports emerged that the company’s board plans to advise shareholders to reject Paramount Skydance’s US$108.4 billion takeover offer.

Warner Bros. Discovery, Inc., WBD

Sources indicate that the board could formally announce its decision as early as December 17, setting the stage for a potentially contentious bidding process. Paramount CEO David Ellison had offered $30 per share in cash for the entire company, aiming to secure one of the largest media deals in recent history.

Netflix Enters the Fray with $72B Offer

Complicating matters, Netflix has submitted a $72 billion bid targeting Warner Bros’ non-cable assets, including its film and television studios, HBO, and HBO Max.

Unlike Paramount’s all-company proposal, Netflix’s offer focuses solely on the content side of Warner Bros Discovery, leaving the Global Networks division, soon to be spun off as Discovery Global, outside the deal.

Analysts note that Netflix’s approach could accelerate synergies in streaming and content distribution while potentially facing fewer regulatory hurdles than an all-encompassing acquisition.

Regulatory Scrutiny May Delay Any Deal

Industry experts caution that antitrust regulators in the U.S. and Europe are likely to examine either deal closely. The Department of Justice (DOJ) may treat the market as subscription video-on-demand (SVOD), meaning a combined Netflix-WBD entity could hold roughly 35% of the market, potentially triggering antitrust concerns.

By contrast, a Paramount-WBD merger WOULD control a smaller 26% share in streaming, though global watchdogs may still impose strict conditions. Regulatory reviews could last one to two years, possibly requiring divestitures, adjustments to content release windows, or other remedies to maintain market competition.

Discovery Global Valuation Key Factor

A critical factor in evaluating the bids is the value of Discovery Global, the cable network segment slated for separation. Though the division remains cash-generative, its growth prospects are considered limited. Investors will likely weigh Discovery Global’s valuation heavily when comparing Paramount’s all-company offer to Netflix’s partial acquisition.

Netflix projects $2 to $3 billion in annual cost savings by its third year post-acquisition, which could influence shareholder perception of long-term value relative to Paramount’s cash-and-debt-backed proposal.

Outlook for Warner Bros Stock

The near-term trajectory of Warner Bros’ stock is expected to remain volatile as shareholders digest the board’s guidance, competing bids, and regulatory uncertainties. While Paramount’s all-cash offer provides immediate liquidity, Netflix’s strategic acquisition could reshape the streaming landscape and create significant operational synergies.

Market watchers will closely monitor announcements over the coming days to gauge potential deal structures, regulatory responses, and implications for Warner Bros Discovery’s long-term growth.