Warner Bros Discovery has urged its shareholders to reject a takeover proposal linked to Paramount Global and Skydance Media, arguing that the bid undervalues the company and introduces significant strategic and regulatory uncertainty. In a communication addressed to investors, Warner Bros made it clear that its board does not believe the offer reflects the company’s long-term growth potential.
Concerns Over Valuation and Strategic Fit
According to Warner Bros, the proposed deal fails to adequately account for the strength of its film studio, television production arm, gaming business, and global streaming footprint. Executives noted that the media company is in the midst of restructuring efforts aimed at improving cash flow, reducing debt, and strengthening its content pipeline—moves they believe will deliver greater value independently than under the proposed acquisition.
Regulatory and Execution Risks Highlighted
The company also raised red flags around potential regulatory scrutiny, especially given the scale of consolidation already underway in the global media and entertainment industry. Warner Bros cautioned that a merger involving Paramount and Skydance could face prolonged approval timelines, operational disruptions, and uncertainty for advertisers, creators, and distribution partners.
Investor Interests at the Center of the Debate
Warner Bros emphasized that its board and management team are committed to protecting shareholder interests, stating that any transaction must provide clear, immediate, and sustainable value. The company reiterated that it remains open to evaluating strategic opportunities but only under terms that fully recognize its assets and future prospects.
Media Industry Consolidation Continues
The rejection comes at a time when traditional media companies are under pressure from streaming competition, changing viewer habits, and rising content costs. While consolidation is increasingly seen as a survival strategy, Warner Bros’ response signals that not all major players are willing to accept takeover offers that they view as opportunistic rather than transformational.