Warner Bros. rejects Paramount’s $20 per share takeover offer amid merger talks

Warner Bros. Discovery Inc. has reportedly turned down an initial takeover offer from Paramount Skydance Corp., calling the proposed $20 per share bid too low, according to people familiar with the matter.

The rejection comes amid ongoing merger discussions between the two major entertainment companies. Sources say Paramount, led by CEO David Ellison, may now consider raising its bid, going directly to Warner Bros. shareholders, or securing additional financial backing from partners such as Apollo Global Management.

Warner Bros. shares closed at $17.10 on Friday, valuing the company at about $42.3 billion, while Paramount’s shares were at $17, giving it a market capitalization of $18.6 billion. The proposed acquisition, if completed, would mark one of Hollywood’s biggest consolidation moves in recent years.

Ellison, who completed an $8 billion merger between Skydance Media and Paramount earlier this year, has publicly advocated for more industry mergers to strengthen content production and streaming services like Paramount+. At the recent Bloomberg Screentime conference, he highlighted the need for strategic partnerships to boost subscriber growth and navigate regulatory challenges.

Warner Bros. is currently preparing to split its operations into two divisions—one focusing on cable TV networks and the other on streaming and studio businesses—by next year. CEO David Zaslav reportedly believes the restructuring will increase the company’s valuation and make any future sale more lucrative.

Bloomberg Intelligence analysts said Warner Bros. holds a stronger negotiating position, while Paramount faces mounting pressure due to its smaller scale and unclear long-term strategy.