Bloomberg Intelligence Warner Bros. Rejects Latest Paramount Bid, Favoring Netflix
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Jan 7, 2026 
Geetha Ranganathan, a media analyst, discusses Warner Bros. Discovery's rejection of Paramount's takeover bid in favor of its deal with Netflix, highlighting shareholder dynamics and potential future offers. Brian Egger, an expert in gaming, explains how DraftKings and FanDuel are gearing up for Super Bowl LX with new prediction-market apps amidst regulatory challenges. George Ferguson shares insights on Alaska Air Group's ambitious order for 110 Boeing aircraft, aiming to evolve into a global carrier while navigating fleet strategies and industry trends.
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Deal Structure Overrides Headline Price
- Warner Bros. Discovery says Paramount's amended $30 bid is structurally inferior and exposes the company to excessive leverage risk.
- Geetha Ranganathan calls the proposed deal a potentially massive leveraged buyout with too many uncertainties compared with Netflix's offer.
Compensation Needed For Termination Costs
- Warner Bros. wanted Larry Ellison's personal guarantee and a higher termination fee, which Paramount provided but still isn't enough.
- The company quantifies extra termination and financing costs at roughly $1.79–$1.80 per share as a shortfall.
Shareholder Tender Activity Is Minimal
- Only about 500,000 Warner Bros. Discovery shares were tendered at $30, far below the roughly 2.6 billion outstanding.
- Geetha says shareholders expect a higher price and David Zaslav reportedly seeks about $34 per share.