The contest over the acquisition of Warner Bros. Discovery appears to have paused for now, as the company has downplayed Paramount Skydance’s $108.4 billion bid in favor of an $82 billion deal with Netflix.
Despite Paramount’s higher headline valuation, Warner Bros. Discovery’s board has unanimously recommended the Netflix proposal, citing stronger long-term value and significantly lower risk.
According to the board, Paramount’s offer carries “numerous and significant risks,” particularly related to its funding structure and execution.
The board noted that clarity around financing was lacking in Paramount’s proposal, raising concerns about whether the deal could be completed smoothly. In contrast, Netflix’s bid is considered well-financed, straightforward, and less exposed to regulatory and operational hurdles.
Warner Bros. Discovery had earlier indicated its openness to selling the company after receiving expressions of interest from multiple parties, including Paramount.
On December 5, the company formally confirmed its agreement with Netflix, covering the sale of its film studio and HBO streaming business. The board later emphasized that Netflix’s offer involves fewer antitrust concerns and a clearer transaction pathway compared to Paramount’s full takeover plan.
A key difference between the two bids lies in structure. Netflix is seeking to acquire Warner Bros.’ movie studio and HBO, while Paramount has proposed a complete acquisition that would also include television networks. Analysts warn that such a comprehensive takeover could attract intense regulatory scrutiny in the United States and Europe due to potential monopoly concerns.
Netflix has welcomed the board’s recommendation, while also alleging that Paramount misled shareholders about the certainty of its $30-per-share cash offer. Although the board’s stance currently favors Netflix, analysts note that a revised or improved offer from Paramount could prolong the sale process and keep uncertainty alive around Warner Bros. Discovery’s future.
