Photo by Aleksander Kalka/NurPhoto via Getty Images Share on Facebook Share on X Google Preferred Share to Flipboard Show additional share options Share on LinkedIn Share on Pinterest Share on Reddit Share on Tumblr Share on Whats App Send an Email Print the Article Post a Comment The board of Warner Bros. Discovery officially rejected David Ellison's $30 per share hostile bid for the company, telling shareholders that it remains "inferior" to the Netflix deal, and carries "numerous significant risks and costs on WBD." With the rejection official, Paramount will need to persuade WBD shareholders to tender their shares at that price, or to submit a higher bid than its $108 billion offer that would shift the outcome of the dealmaking. "Following a careful evaluation of Paramount's recently launched tender offer, the Board concluded that the offer's value is inadequate, with significant risks and costs imposed on our shareholders," said Samuel A. Di Piazza, Jr., chair of the Warner Bros. Discovery board of directors, in a statement. "This offer once again fails to address key concerns that we have consistently communicated to Paramount throughout our extensive engagement and review of their six previous proposals. We are confident that our merger with Netflix represents superior, more certain value for our shareholders and we look forward to delivering on the compelling benefits of our combination." Related Stories Business Netflix's Ted Sarandos Vows to Continue Releasing Warner Bros. Movies "in Theaters With the Traditional Windows" Business Gov. Phil Murphy on New Jersey's Two Big Studios Competing for Warner Bros: "May the Best Team Win" The move had been expected, as the offer was effectively the same one that Paramount had submitted to WBD on Dec. 4, before it accepted Netflix's offer. WBD had concerns around the foreign financing for the deal, as well as whether Oracle founder Ellison would fully backstop the deal, and Wednesday's filing underscored those concerns. WBD said that the backstop from Larry Ellison's revocable trust is not sufficient, because the assets and liabilities aren't disclosed, and because the assets within the trust can be moved or changed. The WBD board, in its filing, also suggested that the Middle East sovereign funds would carry risks, with Saudi Arabia's Public Investment Fund contributing $10 billion, Abu Dhabi contributing $7 billion, and Qatar Investment Authority contributing $7 billion. Concerns over $1 billion to be contributed by Tencent forced Paramount to remove the Chinese tech company from its last bid (Jared Kushner's Affinity Partners had contributed $200 million, though that fund has backed out of the consortium). WBD also said that it does not believe there is a material difference from a regulatory standpoint between the Netflix and Paramount deals. The board also cited the Dec. 3 letter from Paramount attorneys at Quinn Emanuel, writing that the letter "suggests a highly litigious posture rather than a constructive attempt to achieve a negotiated agreement in the best interests of WBD stockholders. Indeed, representatives of PSKY's legal and financial advisors reached out separately to WBD's legal and financial advisors on December 3 and 4, 2025 to indicate that, in their respective views, the December 3 Quinn Emanuel Letter should not have been sent, and was 'not helpful' and a 'mistake.'" So what happens now? Sources say that Ellison and the Paramount team were waiting to see WBD's response before deciding their next move. If Paramount comes back with a higher bid, Netflix will have the chance to match it, or respond with their own counter, effectively kicking off a new bidding war. In a latter to shareholders of its own Wednesday, Netflix argued that its agreement "is the right deal, with the right partner, at the right time." "The Warner Bros. Discovery Board reinforced that Netflix's merger agreement is superior and that our acquisition is in the best interest of stockholders," said Ted Sarandos, Netflix's co-CEO. "This was a competitive process that delivered the best outcome for consumers, creators, stockholders and the broader entertainment industry. Netflix and Warner Bros. complement each other, and we're excited to combine our strengths with their theatrical film division, world-class television studio, and the iconic HBO brand, which will continue to focus on prestige television. We're also fully committed to releasing Warner Bros. films in theaters, with a traditional window, so audiences everywhere can enjoy them on the big screen." Ellison already made it clear that he was willing to go higher than $30 per share in a text message to WBD CEO David Zaslav just a few hours before the Netflix deal was sealed. "Please note importantly we did not include 'best and final' in our bid," Ellison wrote. That text message and regulatory confidence were likely top of mind for investors, with Ellison and some of his top deputies pitching Wall Street shareholders