The board of Warner Bros. Discovery (WBD) is expected to reject Paramount Skydance's revised takeover offer, opting instead to proceed with its previously announced merger agreement with Netflix, according to a Bloomberg News report published Tuesday. The decision, anticipated to be formalized in a vote next week, signals WBD's commitment to a strategic alliance with the global streaming giant, a deal valued at over $80 billion.

Paramount Skydance, led by David Ellison, had presented an amended offer on Dec. 22, seeking to acquire assets considered vital to establishing a major player in the evolving media landscape. The rejection suggests that WBD's board views the Netflix merger as a more compelling path forward in the increasingly competitive global streaming market.

The proposed merger with Netflix reflects a broader trend of consolidation within the media industry, as companies seek to gain scale and resources to compete with established tech giants and emerging streaming platforms. For Netflix, the acquisition of WBD's content library and production capabilities would significantly bolster its offerings, potentially attracting a wider international audience and solidifying its position as a leading global entertainment provider.

The decision also highlights the challenges faced by Paramount Skydance in its pursuit of WBD. The media landscape is increasingly shaped by global dynamics, with companies needing to navigate diverse cultural preferences and regulatory environments. The proposed merger between WBD and Netflix could have significant implications for the distribution and consumption of content worldwide, potentially impacting local media industries and cultural expression.

The formal vote by the WBD board next week will likely confirm the rejection of Paramount Skydance's offer, paving the way for the merger with Netflix to proceed. The deal remains subject to regulatory approvals and other customary closing conditions, but the anticipated decision by WBD's board represents a significant step towards reshaping the global media landscape.