Paramount Outbids Netflix for Warner Bros Discovery

The takeover contest for Warner Bros Discovery has taken a decisive turn, with Paramount Skydance emerging as the leading bidder over Netflix.

Warner Bros Discovery’s board has reportedly determined that Paramount Skydance’s revised offer of $31 per share in cash is superior to Netflix’s earlier $27.75-per-share proposal for the company’s studio and streaming assets.

Paramount’s Broader Proposal

According to reports, Paramount’s bid covers the entire Warner Bros Discovery business, including its pay-TV networks such as CNN, TBS and other channels. The proposal also includes a $7 billion breakup fee designed to address potential regulatory challenges.

The structure and pricing of the revised offer appear to have influenced the board’s assessment.

Netflix Declines to Raise Offer

Netflix, which had previously granted Warner Bros Discovery a seven-day waiver to reopen discussions with Paramount, chose not to revise its bid.

In a joint statement, Netflix co-CEOs Ted Sarandos and Greg Peters said that matching the latest offer would not be financially attractive.

They stated that while Netflix believed it could have been a strong steward of Warner Bros’ brands, the acquisition was considered a “nice to have” rather than essential to the company’s long-term strategy.

Zaslav’s Response

Warner Bros Discovery CEO David Zaslav acknowledged Netflix’s role in the process and thanked its leadership for their engagement during negotiations.

Zaslav said that once the board formally approves the Paramount merger agreement, the transaction is expected to create value for shareholders and mark a new phase of collaboration between the two media groups.

Market Reaction

The stock market reacted quickly to the developments. Netflix shares rose around 10% in extended trading. Paramount shares gained approximately 5%, while Warner Bros Discovery shares declined about 2%.

Analysts noted that Netflix’s decision not to increase its offer may reflect a disciplined approach to valuation. At the same time, Paramount’s higher bid highlights its intent to strengthen its position in the evolving media and streaming industry.

What Happens Next

The proposed merger remains subject to board approval and regulatory review. Further details are expected as the companies move toward finalising the agreement.

If completed, the deal would significantly reshape the competitive landscape in global media and streaming, consolidating major entertainment assets under Paramount Skydance.