Highlights
- Warner Bros. Discovery (WBD) is expected to reject Paramount's revised bid, with a final board decision expected next week.
- Despite a $40.4B guarantee from Larry Ellison and a higher revised breakup fee, the revised Paramount proposal might fall through.
- Major shareholder Harris Oakmark says the Paramount Skydance offer remains insufficient.
Another new update has arrived about the bidding war for Warner Bros. Discovery (WBD), with Reuters reporting that WBD is expected to reject the revised bid from Paramount Skydance (PSKY). According to Reuters’ report on Dec 30, 2025, a person familiar with the matter, who requested anonymity, informed that the WBD board is yet to make the final decision, which is expected to be announced next week.
The expected rejection follows a revised Paramount offer submitted after the Warner Bros. Discovery board asked shareholders to turn down its earlier proposal on Dec 17, 2025, due to financial risk. Both Warner Bros. Discovery and Paramount declined to comment on the matter when they were asked by CNBC.
Paramount’s revised proposal, declared on Dec 22, differs materially from its earlier $108.4 billion USD all-cash offer. Paramount introduced a $40.4B personal guarantee from Oracle co-founder Larry Ellison, the father of PSKY CEO David Ellison, designed to reassure Warner shareholders about the certainty of the bid. It also raised its regulatory reverse termination fee from $5B to $5.8B in the revised offer.
While Larry Ellison’s guarantee was intended to strengthen Paramount’s position as a bidder after resistance from Warner’s board, the latest update suggests the move has not been sufficient to alter the board’s position.
Why Paramount’s Revised Offer to Warner Bros. Discovery Might Fall Short
As the WBD board was against the PSKY offer from the beginning, a new key obstacle for Paramount has been the opposition from one of WBD’s major shareholders, Harris Oakmark. As reported by Reuters, Harris Oakmark’s Portfolio Manager, and Director of U.S. Research, Alex Fitch, Paramount’s revised offer is “not sufficient,” arguing that it needs “to provide a greater incentive" if Paramount is serious about winning.
Harris Oakmark is the fifth largest shareholder of WDB, owning 96M shares. He further noted that PSKY’s revised deal was also not enough to cover the breakup fee of $2.8B that Warner Bros would face if it walked away from the Netflix deal.
Paramount has countered that its proposal compares favorably with alternative consolidation scenarios, positioning its bid as superior to Netflix's move. It is higher in headline cash value with a $30-per-share price versus Netflix’s $23.25-per-share offer.
Paramount also argued that a Warner-Paramount combination would face fewer regulatory hurdles than the Netflix deal, while creating a studio larger than the industry leader, The Walt Disney Company, in terms of content scale and global reach.
The Prolonged Uncertainty of Warner Bros. Discovery Sale
Some shareholders have echoed Paramount’s strategic logic. Yussef Gheriani said the bid reflects a rare opportunity to assemble what he described as “top-shelf media assets” at a time when legacy studios are under pressure to achieve scale. Gheriani argued that Paramount’s willingness to escalate its offer underscores the strategic value of Warner’s film, television, and sports portfolios.
The different views among shareholders highlight the uncertainty surrounding Paramount’s pursuit of Warner Bros. Discovery. While investors such as Thomas Poehling and Yussef Gheriani have voiced support for Paramount’s proposal, Oakmark has remained opposed along with the board, reinforcing the board’s cautious approach.
For now, the outcome remains unresolved. Reuters reported that the Warner Bros. Discovery board is expected to meet next week to make the final decision, keeping the door open procedurally for further discussion.
