Netflix CEO Firmly Rejects Paramount's Massive Warner Bros. Discovery Acquisition Bid
In a significant development in the media industry's ongoing consolidation battle, Netflix CEO Greg Peters has categorically rejected Paramount Skydance's staggering $108 billion offer to acquire Warner Bros. Discovery. The rejection comes amid revelations about Oracle co-founder Larry Ellison's substantial financial backing of the proposed deal, raising questions about the feasibility of Paramount's ambitious acquisition plans.
Ellison's $40.4 Billion Financing Role Under Scrutiny
According to reports from Financial Times, Peters specifically called out the involvement of billionaire Larry Ellison, who has reportedly agreed to personally fund $40.4 billion in equity financing to support Paramount Skydance's all-cash offer. The Netflix CEO made a bold statement about the deal's viability, telling FT: "Without Larry Ellison independently financing this thing, there's no chance in hell Paramount would ever be able to pull this off."
This financial arrangement is particularly noteworthy given the family connection involved. Larry Ellison is the father of David Ellison, who serves as CEO of Paramount, adding a personal dimension to the corporate financing structure.
Netflix CEO Questions Paramount's Financial Capacity
Peters didn't mince words when assessing Paramount's financial position, describing their $30-per-share offer as "pretty crazy" given the company's existing debt burden. "Paramount already is saddled with quite a lot of debt," he noted, expressing skepticism about their ability to secure additional leverage needed to finance the massive acquisition.
The Netflix executive also claimed that only a "very small" number of Warner Bros. Discovery shareholders have shown support for Paramount's hostile buyout offer, suggesting limited enthusiasm for the alternative proposal.
Warner Bros. Discovery Board Previously Rejected Paramount Offer
This latest rejection follows Warner Bros. Discovery's board of directors' earlier decision to turn down Paramount's $108.4 billion offer on January 7, 2026. The board cited multiple concerns about the buyout plans, describing the offer as "inadequate" and expressing worries about "insufficient value" for shareholders.
Samuel A. Di Piazza, Jr., Chairperson of Warner Bros. Discovery's board, explained their position clearly: "The board unanimously determined that Paramount's latest offer remains inferior to our merger agreement with Netflix across multiple key areas." The board also highlighted "lack of certainty" in Paramount's ability to fulfill the offer, creating potential risks and costs for shareholders.
Netflix's Revised All-Cash Deal Structure
Meanwhile, Netflix has been strengthening its own position in the acquisition race. SEC filings from January 20, 2026, revealed that Netflix has revised its potential acquisition deal into an all-cash arrangement, simplifying the transaction structure while maintaining the $27.75 per share valuation for Warner Bros. Discovery shares.
Peters expressed confidence in Netflix's approach, stating that Paramount's offer "doesn't pass the sniff test" and emphasizing that Netflix's revised offer provides "greater deal certainty." The Netflix CEO highlighted that their proposal is partly funded by $55 billion of debt, showcasing what he described as Netflix's strong balance sheet for the potential all-cash deal.
Shareholder Decision Looms in April 2026
As the media world watches closely, Netflix is actively working to secure support from any wavering Warner Bros. Discovery shareholders ahead of the crucial April 2026 shareholders vote. The battle between these media giants represents one of the most significant corporate showdowns in recent entertainment industry history, with billions of dollars and strategic positioning at stake.
The outcome will not only determine the future ownership structure of Warner Bros. Discovery but could significantly reshape the competitive landscape of global media and streaming services for years to come.
