Warner Bros. Discovery's board is currently evaluating an enhanced bid from Paramount Skydance, valued at $30 per share. This new proposal aims to overshadow the entertainment conglomerate's previous agreement with Netflix. The revised offer from Paramount also addresses the financial implications of breaking the existing deal with Netflix, signaling a potential shift in the acquisition landscape.
Warner Bros. Discovery Reconsiders Options Amidst Intensified Bidding
In February 2026, media giant Warner Bros. Discovery, Inc. (NASDAQ: WBD) found itself at the heart of a significant corporate drama. The company's board is now actively deliberating a sweetened offer from Paramount Skydance (NASDAQ: PSKY), led by David Ellison. This proposal presents a per-share valuation of $30, which notably exceeds the $27.75 per share deal previously struck with Netflix Inc. (NASDAQ: NFLX) for its studio operations and HBO Max streaming service.
According to reports, Paramount's latest offer includes a crucial clause: it commits to covering the approximately $2.8 billion termination fee that Warner Bros. Discovery would incur should it withdraw from its current agreement with Netflix. Furthermore, Paramount has pledged to financially compensate shareholders if their acquisition deal does not conclude by December 31st of the same year. This comprehensive revised offer has spurred Warner Bros. Discovery to reopen discussions with Paramount, potentially initiating a competitive bidding scenario. Previously, Netflix had affirmed its $82.7 billion all-cash acquisition price without an increase.
The current market dynamics reflect the uncertainty surrounding these developments. Over the past month, shares of Warner Bros. Discovery have seen a slight decrease of 1.76%, while both Netflix and Paramount have experienced more significant declines, each falling over 12%. The stock performance underscores the high stakes involved in this corporate tussle for control over a major entertainment entity.
This unfolding situation highlights the dynamic and competitive nature of the media industry. For Warner Bros. Discovery, the revised offer from Paramount Skydance creates an opportunity to secure a potentially more lucrative deal, albeit with the complexity of navigating an existing agreement. For investors and industry observers, it underscores the importance of strategic positioning and the willingness of major players to adapt their offers to gain a competitive edge in high-stakes mergers and acquisitions.