Paramount Wedges In On Netflix's Near-Done Deal as Warner Board Finally Considers Offer

Warner Bros. Discovery's board is now weighing a hostile, all-cash takeover bid from Paramount Skydance for $108 billion, a move that directly challenges WBD's existing agreement to sell its streaming and studio assets to Netflix.

• The tale of two deals: The corporate tug-of-war pits two proposals against each other. In one corner is Netflix's $83 billion deal, which would leave WBD shareholders with a variable return between $21 and $28 per share. In the other is Paramount's fixed $30 per share offer, which promises a clear, guaranteed price for the entire company.
• Absorbing the poison pills: To make its unsolicited offer more appealing, Paramount announced it would absorb two of the biggest financial deterrents in the Netflix agreement: the $2.8 billion termination fee and another $1.5 billion in potential financing costs. The company is also adding a "ticking fee," promising to pay shareholders an extra $650 million per quarter if the deal is delayed by regulators past late 2026.
• What happens next: The WBD board could reveal its decision to formally engage with Paramount as early as today, according to a report from TVNewsCheck. Such a move would give Netflix a contractual right to match or raise the new bid, potentially kicking off an even more intense bidding war for the media giant.

Finally Paramount has forced WBD's hand with a financially compelling and structurally simpler offer. The board now faces a difficult choice between a pre-arranged deal and a hostile bid that offers shareholders a clearer, higher price, setting the stage for a dramatic showdown. For another take on the unfolding drama, Bloomberg also reported on the board's deliberations.