WBD Board Leans to Netflix's $83B Bid Over Paramount's Hostile Offer
Warner Bros. Discovery is set to reject a higher $108B hostile takeover from Paramount Skydance, favoring a strategic asset sale to Netflix that would reshape the streaming landscape.
Netflix Inc. (NFLX) is on the verge of a transformative acquisition, as the board of Warner Bros. Discovery (WBD) is reportedly preparing to recommend Netflix’s $82.7 billion offer for its prized streaming and studio assets. The move signals a rejection of a higher, unsolicited $108.4 billion hostile takeover bid for the entire company from rival Paramount Skydance, according to recent filings and reports.
Shares of Netflix climbed 0.85% to $94.57 in recent trading as investors digested the monumental implications of the potential deal. The acquisition would see Netflix take control of a vast content empire including the Warner Bros. film and television studios, the iconic HBO brand, the Max streaming service, and the DC Studios superhero franchises. In contrast, Warner Bros. Discovery shares fell 2.7% to $28.90, trading below Paramount's $30-per-share offer price and suggesting market uncertainty around the unfolding battle.
The complex situation escalated on December 8, 2025, when Paramount Skydance launched an all-cash tender offer to acquire all of WBD, representing a dramatic 139% premium at the time. However, WBD's board appears to favor the strategic logic of the Netflix deal, which, while smaller, is seen as providing greater long-term value and higher certainty of closing.
The certainty of the Paramount deal was dealt a significant blow this week when Affinity Partners, a private equity firm led by Jared Kushner, confirmed it was withdrawing its financial backing, as first reported by Fox Business. The loss of a major backer introduces significant risk to Paramount's hostile bid, likely factoring heavily into the WBD board's preference for the Netflix offer.
For Netflix, the world's largest streaming service with a market capitalization of nearly $397 billion, the acquisition would be a strategic masterstroke. It would not only provide a deep library of globally recognized intellectual property—from 'Harry Potter' and 'Game of Thrones' to 'Batman'—but it would also effectively absorb and neutralize Max, one of its most significant streaming competitors. The integration of Warner Bros.' legendary production capabilities would bolster Netflix's own studio operations, creating an unparalleled content creation and distribution powerhouse.
Analysts are now focused on the immense regulatory hurdles such a combination would face. A merger of the number one streaming service with the owner of HBO and Warner Bros. would undoubtedly trigger an intense antitrust review from the Department of Justice. Regulators would closely scrutinize the deal's impact on consumer choice, content licensing, and the broader competitive landscape.
The decision by WBD's board to lean away from the Paramount offer underscores the immense pressure on legacy media companies to find a viable path forward in the streaming era. Warner Bros. Discovery, itself the product of a recent mega-merger, has been focused on deleveraging its balance sheet. Paramount Global (PARA), meanwhile, has faced its own strategic challenges, with its shares up a modest 0.72% in recent trading. The failure of its ambitious takeover bid could force it to seek other options in a rapidly consolidating industry.