Warner Bros Backs Netflix Bid Over Paramount Skydance, Stocks React
Warner Bros Discovery's board has thrown its weight behind Netflix's $72 billion offer for its movie and TV studios, rejecting Paramount Skydance's higher $108.4 billion bid for the entire company. The decision sent Paramount Skydance shares tumbling 5%, while Netflix stock dipped 2.4% despite its frontrunner status.
The proposed deal hinges on Warner Bros first spinning off its Discovery Global TV networks in Q3 2026. Paramount's all-cash $30/share offer technically surpasses Netflix's $27.75/share cash-and-stock proposal, but the board deemed it inferior to their existing agreement with the streaming giant.
Market watchers now await Paramount's next MOVE - David Ellison has until January 8, 2026 to potentially sweeten the deal. The corporate maneuvering highlights the intense competition in the streaming wars, where content libraries increasingly determine market dominance.
