Warner Bros. Discovery (WBD) finds itself at the epicenter of a high-stakes merger and acquisition (M&A) battle, with its board poised to reject an amended takeover offer from Paramount Skydance, led by David Ellison. Despite Ellison's persistent efforts to acquire WBD assets crucial for his vision of a 21st-century Hollywood heavyweight, the WBD board is expected to formally vote next week to decline Paramount Skydance's latest bid, first reported by Bloomberg News on Tuesday, December 22.

WBD had previously struck an agreement to merge with Netflix in a deal valued at just under $83 billion. However, Paramount Skydance has not relented, making a tender offer directly to WBD shareholders. Paramount Skydance's amended offer largely addressed financing concerns, with software billionaire Larry Ellison, David Ellison's father, making an “irrevocable personal guarantee of $40.4 billion” toward Paramount’s $108 billion all-cash offer for all of WBD. This comprehensive offer includes key assets like CNN, TNT, and other established linear cable channels, which are slated for spin-off into a separate company next year under the Netflix deal. Paramount's amended offer also increased the breakup fee to match Netflix’s $5.8 billion, payable to WBD if the deal fails regulatory review.

The WBD board’s anticipated rejection is consistent with its previous stance, showing no significant shift in its assessment of the best strategic fit for Warner Bros. and HBO Max. Industry observers are now keen to see if Paramount Skydance is willing to further increase the financial value of its bid, currently at $30 a share, beyond the existing offer. The Netflix deal, by contrast, is a mix of cash and stock and does not encompass the linear cable channels.

This intense M&A drama has significantly impacted the market value of Warner Bros. Discovery. David Ellison's aggressive pursuit accomplished what WBD CEO David Zaslav had struggled with for over three years: dramatically boosting the company's market value. WBD shares, which traded under $10 for most of 2024, soared more than 170% this year, reaching all-time highs in 2025. As of December 30, WBD’s market capitalization stood at $71.8 billion, a substantial increase from approximately $25 billion at the start of the year.

The M&A battle also triggered significant swings in the stocks of other major players. Netflix shares were up as much as 51% in mid-2025, benefiting from solid growth and bullish analyst forecasts, though they ended the year up around 22% after investors reacted with caution to the prospect of the $83 billion WBD deal's uncertainty and potential heavy debt load. Netflix also executed a 10-for-1 stock split in October to enhance affordability. Paramount shareholders initially showed enthusiasm for David Ellison’s play, but Paramount Skydance’s stock price has declined as WBD consistently rebuffed its bids. Comcast, which made an unsuccessful bid to combine WBD's streaming and studios with its own related businesses, saw its stock price languish, closing down 17% for the year. Comcast's spin-off of Versant (comprising cable networks like CNBC, MS NOW, and USA) is set to close on January 2, aiming to unshackle NBC broadcast and Peacock streaming from declining cable TV networks and present a streamlined, more valuable Comcast to investors.

The M&A saga surrounding Warner Bros. Discovery is far from over. If the WBD board’s expected rejection prompts Paramount Skydance to raise its offer, the ball will then move into Netflix’s court to determine its willingness, if any, to increase its bid. Notably, regardless of whether Netflix finalizes its deal or Paramount Skydance ultimately acquires the company, WBD CEO David Zaslav stands to become a billionaire from his stock holdings.