Warner Bros (WBD) Backs Netflix (NFLX) Bid, Paramount Skydance Stock (PSKY) Dips

Streaming's tectonic plates just shifted.

Warner Bros Discovery throws its weight behind Netflix's latest power play, a move that sends Paramount's Skydance stock tumbling. The alliance reshapes the battlefield—Netflix gains a heavyweight partner, while Paramount faces a sudden chill.

The Numbers Tell the Story

Look at the ticker. PSKY's dip isn't a blip; it's the market's verdict on being left out of the room where deals get made. Meanwhile, WBD's backing isn't charity—it's a calculated bet on Netflix's distribution firepower, a classic 'if you can't beat 'em, join 'em' with a Hollywood twist.

Old Guard Plays New Games

Forget slow-moving conglomerates. This is corporate chess at streaming speed. Alliances form overnight, and yesterday's competitor is today's strategic partner. It's a reminder that in the content wars, loyalty lasts exactly as long as the next quarterly earnings call.

The bottom line? Content is still king, but distribution is the kingdom. And as the giants dance, someone always pays the band—or in this case, watches their stock take the hit.

WBD said its board unanimously decided that Paramount Skydance’s December 8, 2025 tender offer is not good for WBD or its shareholders and does not qualify as a “Superior Proposal” under its December 5, 2025 merger agreement with Netflix. The board recommends that WBD shareholders reject PSKY’s offer. We won’t have confirmation on whether Warner Bros will choose Netflix’s or Paramount’s bid, but the former is the frontrunner.

On the other hand, it’s unclear if Paramount and David Ellison will up their bid. Paramount’s all-cash offer of $30 per share tops Netflix’s $27.75 per share cash-and-stock deal, and is set to expire on January 8, 2026. Ellison has until then to decide if he wants to increase itPSKY stock fell 5% on Wednesday, while NFLX stock fell 2.39% as of market close.