After Warner Bros Discovery (WBD) backed Netflix’s offer over Paramount Skydance’s to buy the company, both WBD and PSKY stock fell on Wednesday. Meanwhile, NFLX stock is rising on prospects of winning the race.
Per reports, WBD’s board has rejected Paramount’s $108.4 billion offer to buy the entire company and has decided to back Netflix’s current $72 billion bid for Warner Bros.’ movie and TV studios, as well as HBO Max. The deal will happen after WBD spins off its TV networks (Discovery Global) in Q3 2026.
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.