On Tuesday, February 24, 2026, the bidding war for Warner Bros. Discovery (WBD) reached a fever pitch as the board officially “reopened the door” to Paramount Skydance.
The board announced that Paramount’s latest sweetened offer—now at $31 per share—is strong enough that it “could reasonably be expected to lead to a superior proposal” compared to the existing deal with Netflix.
The Bidding War: Paramount vs. Netflix
The two giants are fighting for different versions of Warner Bros. Discovery, forcing shareholders to choose between a “clean break” and a “total buyout.”
| Feature | Paramount Skydance (PSKY) | Netflix ($NFLX) |
| Offer Price | $31.00 per share (Cash) | $27.75 per share (Cash/Equity) |
| Total Value | $108.4 Billion | $82.7 Billion |
| Scope | Entire Company (Studios, HBO, CNN, Discovery) | Studio & Streaming Only (Studios, Library, HBO) |
| Regulatory Risk | High (Combines 2 of “Big 5” studios) | Moderate (DOJ review ongoing) |
| Safety Net | $7 Billion regulatory breakup fee | $2.8 Billion breakup fee |
Why the Board Reopened Talks
After a seven-day “limited waiver” period granted by Netflix, Paramount provided several new incentives that forced WBD’s board to re-engage:
- Price Hike: Paramount raised its all-cash offer from $30 to $31 per share.
- The “Ticking Fee”: To ease concerns about long regulatory delays, Paramount agreed to pay shareholders 25 cents per share for every quarter the deal drags on past September 30, 2026.
- Financing Guarantee: Backed by Larry Ellison and RedBird Capital, Paramount pledged additional equity to ensure the deal closes even if banks get cold feet about debt financing.
- CNN Preservation: Paramount intends to keep CNN and Discovery integrated, whereas the Netflix deal would spin them off into a new entity called “Discovery Global.”
The “Trump Factor”
The deal has become a political lightning rod. Paramount Skydance is led by David Ellison, whose father, Oracle founder Larry Ellison, is a prominent ally of President Trump.
- Presidential Interest: Trump has publicly stated he will have a “say” in the merger, particularly regarding the future of CNN.
- Regulatory Landscape: Critics worry that an Ellison-led takeover could result in a media landscape more favorable to the current administration, while proponents argue it’s the only way to save the storied Warner studio from being “cannibalized” by a tech-first giant like Netflix.
What Happens Next?
Despite the new talks, the WBD board continues to recommend the Netflix transaction for now.
- Netflix’s Move: Under the current agreement, Netflix has four business days to match or exceed Paramount’s $31 offer.
- The Vote: WBD has scheduled a special shareholder meeting for March 20, 2026, where investors will cast their final votes on the Netflix merger—unless a superior deal is officially signed before then.
- DOJ Scrutiny: Regardless of the winner, the U.S. Department of Justice has already initiated a massive antitrust review that could take 12 to 18 months to resolve.
