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Warner Bros Discovery is expected to urge shareholders to reject a $108.4 billion takeover bid from Paramount Skydance, according to multiple reports, marking a decisive turn in one of the media industry's biggest battles in years.
Sources cited by the Financial Times and Reuters say the company's board could formally recommend against the offer as early as Wednesday, citing concerns over financing, regulatory risk and long-term strategy. Warner Bros declined to comment, while Paramount Skydance and its backers have also not responded publicly.
The rejection would reinforce Warner Bros' recent decision to back a $72 billion deal with Netflix for its film and streaming assets. Paramount has argued that its proposal is superior, offering shareholders greater value and a clearer path through regulators by keeping television networks within the combined group.
However, the structure of Paramount's bid has raised doubts. The offer is backed by the billionaire Ellison family alongside private equity firm RedBird Capital, and relies heavily on new debt financing. Complicating matters further, Affinity Partners, an investment firm founded by Jared Kushner, has reportedly withdrawn from the financing consortium, reducing the certainty of funds.
Warner Bros put itself up for sale in October after receiving interest from multiple suitors. Its assets are considered among the most valuable in global entertainment, spanning historic film libraries and modern franchises such as Harry Potter, Friends, HBO and the HBO Max streaming service.
Any takeover would face intense scrutiny from competition regulators in both the United States and Europe. Analysts say a combined Warner Bros–Paramount entity would wield enormous influence over content creation and distribution, particularly in an already crowded streaming market.
Industry groups have also voiced opposition. The Writers Guild of America's East and West branches have urged regulators to block a merger, warning it could accelerate job losses, suppress wages and reduce the volume of content available to audiences.
Paramount has countered that its bid preserves creative scale while strengthening competition against dominant players. Still, Warner Bros' board appears unconvinced that benefits outweigh risks.
If shareholders follow the expected recommendation, Paramount's bid would likely collapse, leaving Netflix as the preferred partner. The decision could redefine Hollywood dealmaking and reshape power across global streaming platforms going forward.
