Netflix’s Warner Bros. Deal Crumbling? Cash Bid Sparks 4-Day Showdown

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A potential merger between Netflix and Warner Bros. Discovery is facing possible regulatory hurdles, reports Charles Gasparino of the NY Post. He suggests antitrust issues could significantly delay the deal, potentially benefiting Paramount and Skydance’s offer of $31 per share in cash.

Following Warner Bros. Discovery’s statement that a new offer from Paramount and Skydance might be better, Alex Gaspino cautioned that Netflix has just four days to respond and could encounter difficulties getting approval from regulators.

Gasparino: Netflix Has a Regulatory Problem

Sources in Washington say that a potential merger between Netflix and Warner Bros. Discovery is facing increasing scrutiny from antitrust regulators in both the U.S. and Europe.

He highlighted concerns from regulators who previously served under President Trump, indicating that Netflix hasn’t effectively convinced them the merger wouldn’t limit consumer choice. Essentially, they’re questioning whether combining these two streaming services would create unfair competition.

According to Gasparino, Netflix’s claim that competition from social media justifies the deal isn’t persuading regulators who are examining it.

Two Years of Uncertainty vs. $31 Cash

According to Gasparino, Warner Bros. Discovery might need to ask its investors to be patient – potentially for up to two years – while waiting for regulators to approve a merger with Netflix. This would be necessary to maintain the recommendation for the merger.

This differs from the new $31 per share cash offer from Paramount Skydance, which he said is expected to face fewer hurdles with regulators.

The choice is straightforward: receive $31 per share in cash right away, or face a lengthy review and uncertain outcome with the Netflix offer.

Questions About Netflix’s Financing

Gasparino also questioned how Netflix plans to pay for the deal, pointing out that part of their $27.75 per share offer seems to rely on Warner Bros. Discovery selling off its cable properties.

He suggested this funding method creates more risk than the straightforward, all-cash deal offered by Paramount Skydance.

Even if Netflix offered the same amount or more—$31—Charles Gasparino believes potential regulatory hurdles could still make their bid less appealing.

Four Days That Could Shift the Deal

If Warner Bros. Discovery (WBD) decides that a bid from Paramount Skydance is better than the current offer, Netflix would have four business days to improve its own bid.

According to Gasparino, the next few weeks are critical for Netflix, as its legal and lobbying teams work fast to resolve regulatory issues.

It’s unclear if Netflix will address these concerns, or if Warner Bros. Discovery will instead accept the $31 per share offer from Paramount and Skydance. The outcome will likely decide who owns a major Hollywood studio.

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2026-02-25 02:01