WB Rejected Third Paramount Bid Despite Offer to Keep Zaslav as Co-CEO

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According to a new report in The New York Times, Warner Bros. Discovery (WBD) rejected three offers from Paramount and Skydance to be acquired. One proposal even included a plan for WBD CEO David Zaslav to become co-CEO and co-chairman of the combined company. The latest offer was the most substantial yet, valuing WBD shares 87% higher than they were before the deal talks fell apart last month.

The Paramount WB Bid That Wasn’t

Paramount initially offered $19 per share in mid-September, increasing it to $22 later in the month. Their final offer, sent on October 13th and reviewed by The New York Times, was $23.50 per share, paid in a combination of cash and stock. Notably, the offer was structured to be mostly cash – 80% – and included a $2.1 billion penalty if the deal didn’t go through.

Surprisingly, the deal apparently would have made David Zaslav a co-CEO with Paramount’s CEO, David Ellison. This move likely aimed to reassure people about stable leadership during the huge merger.

Even though Warner Bros. Discovery made some compromises, the company’s board rejected the offer and decided to consider proposals from other potential buyers.

Why WBD Said No

The Warner Bros. Discovery board thought it had stronger paths forward, including its original plan to divide the company by April 2026 and a new evaluation of all options, which opened the door for potential buyers. This decision quickly sparked interest from other major companies, with reports that Comcast and Amazon were both considering making offers.

Paramount explained in a letter that they were the only realistic company able to complete the deal without significant problems from regulators. In his response, Ellison pointed out that companies like Amazon and Comcast could face tougher antitrust reviews, especially considering former President Trump’s history of criticizing CNN and Comcast’s CEO, Brian Roberts – factors that could make getting the merger approved more difficult.

The Stakes for Hollywood

As a movie critic, I was really keeping an eye on that proposed Paramount-Warner Bros. merger. Had it gone through, it would have been massive – a true Hollywood superpower. Imagine combining the resources of Paramount Pictures and Warner Bros., and putting CBS News and CNN together? Beyond that, think about the streaming wars – merging Paramount+ and HBO Max would have created a serious contender, potentially dominating the market and changing how we watch movies and TV for a long time to come. It really would have shaken things up.

These two companies are now taking very different paths. Paramount, led by David Ellison, is actively growing through acquisitions and new content, recently adding UFC rights, the creators of Stranger Things, and the news platform The Free Press. Warner Bros. Discovery, however, is dealing with falling revenue from traditional cable TV and a streaming service that’s struggling to match the size and popularity of Netflix and YouTube.

What Comes Next

Although Warner Bros. Discovery initially turned down Paramount’s offer, a deal isn’t off the table. Paramount has shown it’s willing and able to spend more, and experts suggest a new, higher offer could still happen—particularly if companies like Comcast or Amazon also become interested and increase the pressure. For now, Warner Bros. Discovery is indicating it’s open to offers, but wants to find a partner or receive a price that it considers fair.

The proposed merger between Paramount and Warner Bros. aimed to create a dominant force in Hollywood, but Warner Bros.’s board of directors has effectively changed the plan.

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2025-10-23 20:56