‘Doesn’t pass the sniff test’: Netflix dismisses Paramount’s $108bn Warner Bros bid

Netflix co-CEO Greg Peters has rejected Paramount Skydance’s $108 billion hostile bid for Warner Bros. Discovery (WBD), describing the proposal as unrealistic and lacking credible financial backing.

In an interview with the Financial Times, Peters said the offer “doesn’t pass the sniff test” and hinges heavily on leverage and potential support from Oracle founder Larry Ellison.

Peters contrasted Paramount Skydance’s approach with Netflix’s revised $82.7 billion all-cash offer, arguing that a debt-free structure offers greater stability and certainty for shareholders. He said the level of borrowing required for Paramount’s bid was excessive and risky.

Following the WBD board’s rejection of the Paramount proposal, the company took its offer directly to shareholders. However, regulatory filings indicate Paramount Skydance has secured only around 7 per cent of WBD shares so far, well short of the threshold required to gain control. Analysts have noted growing investor preference for Netflix’s cash-backed bid, particularly amid concerns over debt-heavy mergers in a high-interest-rate environment.

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A potential merger between Netflix and Warner Bros. Discovery would significantly reshape the global entertainment industry, bringing together major franchises such as Game of Thrones and Harry Potter with Netflix originals including Stranger Things and Squid Game. The scale of such consolidation has raised concerns among filmmakers, unions and cinema operators about Netflix’s expanding influence, particularly over theatrical releases.

Addressing these concerns, Peters said Netflix would continue to respect Warner Bros.’ traditional 45-day theatrical release window. He also acknowledged that the proposed deal would face close scrutiny from regulators in both the United States and Europe due to its impact on competition and consumer choice.

Peters stressed that Netflix does not view itself as dominating the entertainment landscape, pointing to competition from platforms such as YouTube, Amazon and Apple. He noted that Netflix accounts for less than 10 per cent of total television viewing hours in most markets, highlighting the fragmented nature of global media consumption.