Key Moments
- Netflix exited the bidding after Warner Bros Discovery’s board labeled Paramount Skydance’s $31 per share offer for the entire company as “superior”.
- Netflix had led earlier with a $27.75 per share bid for Warner’s studio and HBO Max businesses, valuing those assets at almost $83bn including debt.
- If completed, a Paramount Skydance takeover would combine two of Hollywood’s five legacy studios and likely trigger regulatory and political scrutiny over media concentration.
Paramount Skydance Takes Lead in WBD Takeover Battle
Paramount Skydance now leads the race to acquire Warner Bros Discovery (WBD). Netflix withdrew from the process, clearing the path for Paramount’s bid to become the preferred option.
The shift follows a series of escalating offers. Earlier this week, Paramount submitted a final proposal to acquire all of WBD for $31 per share. As a result, the all-cash valuation placed WBD at $111bn (£82.4bn) including debt.
Bid Details: Netflix vs Paramount Skydance
Previously, Netflix was viewed as the leading contender. Its proposal targeted Warner’s studio operations and the HBO Max streaming platform for $27.75 per share. In total, the offer valued those units at almost $83bn (£61.6bn) including debt.
Meanwhile, the competing bids triggered a back-and-forth process of improved terms. Ultimately, Paramount submitted the higher, company-wide offer.
| Bidder | Scope of Offer | Offer Price (per share) | Implied Value Including Debt |
|---|---|---|---|
| Netflix | Warner studio and HBO Max businesses | $27.75 | Almost $83bn (£61.6bn) |
| Paramount Skydance | Entire WBD business | $31 | $111bn (£82.4bn) |
Board Shifts Stance, Calls Paramount Offer “Superior”
On Thursday night, Warner’s board signaled a shift in position. While it maintained its recommendation in favor of Netflix’s bid, it also judged Paramount’s proposal to be “superior”. Consequently, this marked the first explicit sign of support for Paramount, which the company had initially labeled a hostile bidder in December.
Following the board’s revised assessment, Netflix responded quickly. The company exited the contest hours later, stating that the transaction was “no longer financially attractive”.
Netflix co-CEOs Ted Sarandos and Greg Peters said: “We believe we would have been strong stewards of Warner Bros’ iconic brands. However, this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.”
Warner and Paramount Signal Alignment, But No Final Deal Yet
Despite Netflix’s withdrawal, Paramount Skydance has not secured a definitive agreement. Warner’s board has yet to grant full approval. Nevertheless, the company has softened its tone and expressed support for the bid for the first time.
In a statement, WBD CEO David Zaslav endorsed the strategic rationale of the proposed combination. He said Paramount’s offer “will create tremendous value” and added that WBD is “excited about the potential of a combined Paramount Skydance and Warner Bros Discovery”.
Regulatory and Political Hurdles Ahead
Any takeover still requires approval from Warner shareholders and clearance from regulators. In particular, the review will examine competition issues and concerns about political influence in the media landscape.
If Paramount Skydance succeeds, it would control CNN alongside CBS News. As a result, the deal could intensify debate over consolidation of major news outlets within a small group of companies linked to allies of Donald Trump.
Paramount chair and chief executive David Ellison is the son of billionaire Larry Ellison, an ally of the US president. He has provided tens of billions of dollars in funding guarantees for the WBD bid.
Strategic Impact on Hollywood and Streaming
A merger between Paramount and Warner would unite two of Hollywood’s five legacy studios under one corporate roof. Consequently, the deal would reshape the traditional studio system and the streaming landscape.
Warner’s portfolio includes franchises such as Harry Potter, as well as films like Superman and Barbie. In addition, the company produces television hits including Succession. These assets would integrate into Paramount’s content offering.
Paramount’s catalog features titles such as Top Gun and The Godfather. It also operates the streaming platform Paramount+.
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