WBD Says Paramount Skydance Bid Could Lead to ‘Company Superior Proposal’ Over Netflix Deal

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Okay, so things are getting interesting! Warner Bros. Discovery is seriously considering a new, bigger offer from Paramount and Skydance. Basically, their board thinks this new deal could actually be better than the one they already have with Netflix – enough so that they’re legally allowed to consider switching. It’s a big moment, and could change everything!

Honestly, this just keeps the whole sale situation going! Warner Bros. Discovery is still talking to Paramount and Skydance, even though they already have a deal with Netflix that’s supposed to be solid. It’s a bit confusing, but I’m staying hopeful that everything works out for the best.

Paramount Skydance Raises Offer to $31 Per Share

According to WBD, the revised proposal from Paramount Skydance includes:

  • $31.00 per WBD share in cash
  • A daily ticking fee equal to $0.25 per quarter beginning after September 30, 2026
  • A $7 billion regulatory termination fee if the deal fails due to regulatory issues
  • Payment of the $2.8 billion termination fee WBD would owe Netflix
  • Additional equity funding if required by lending banks
  • A revised “Company Material Adverse Effect” definition excluding performance of WBD’s Global Linear Networks business

This arrangement is designed to minimize risk for Warner Bros. Discovery shareholders, mainly by covering the costs if the deal with Netflix falls through and by offering safeguards in case the deal faces regulatory hurdles.

Board Has Not Declared Paramount Skydance Superior

Although Warner Bros. Discovery acknowledged the proposed deal with Paramount and Skydance could be better than other options, the board hasn’t yet decided if it is actually a better choice than merging with Netflix.

If Warner Bros. Discovery (WBD) determines that the offer from Paramount and Skydance is better, Netflix will have four business days to try and improve its own deal.

Currently, Warner Bros. Discovery continues to support the merger agreement with Netflix and still advises its shareholders to approve the deal.

What This Means for the WBD Sale

This decision shows Paramount Skydance is determined to acquire Warner Bros. Discovery and is prepared to significantly improve its offer to make it happen.

With the price set at $31 per share, plus safeguards and protection against cancellation fees, Netflix is now facing more pressure to make a counteroffer.

There’s no certainty about the final result. Warner Bros. Discovery has stated that talks with Paramount and Skydance might not lead to a deal, and even if they do, the company’s board still needs to decide if it’s the best option.

The Netflix deal is currently finalized, however, Paramount Skydance is now more aggressively competing with Warner Bros. Discovery for dominance.

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2026-02-25 01:31