The board of Warner Bros. Discovery (WBD) is expected to reject the revised takeover bid from Paramount Skydance, according to a Bloomberg News report published Tuesday. The decision signals WBD's intent to proceed with its previously announced merger agreement with Netflix, a deal estimated to be worth over $80 billion.

The Paramount Skydance offer, spearheaded by David Ellison, was submitted Dec. 22, and aimed to combine Paramount's assets with Skydance Media, a move Ellison believes is crucial for establishing a major player in the evolving global media landscape. The rejection indicates WBD's confidence in its strategic alignment with Netflix, a streaming giant with a significant international presence.

The proposed merger between WBD and Netflix reflects a broader trend of consolidation within the media industry, as companies seek to gain scale and compete more effectively in the global streaming market. Netflix's established international subscriber base and technological infrastructure, coupled with WBD's extensive library of content, including franchises like Harry Potter and DC Comics, are seen as a potentially powerful combination.

The decision comes at a time when media companies worldwide are grappling with shifting consumer habits and the increasing importance of streaming services. Traditional media conglomerates are facing pressure to adapt to the digital age, and mergers and acquisitions are becoming increasingly common as companies seek to bolster their competitive positions. The WBD-Netflix deal, if finalized, would create a media powerhouse with a global reach, potentially impacting the competitive landscape for streaming services in markets across Asia, Europe, and Latin America.

The formal vote by the WBD board is scheduled to take place next week. The outcome of this vote will have significant implications for the future of both Warner Bros. Discovery and Paramount, as well as the broader media industry worldwide.