Netflix’s leadership has publicly defended its bid to acquire part of Warner Bros, asserting that its proposal delivers greater strategic value for shareholders and the broader entertainment industry as competing offers from Paramount Skydance reach critical deadlines. The high-stakes contest over Warner Bros., a century-old Hollywood powerhouse with a vast portfolio of film, television, streaming and intellectual property assets, has escalated into one of the most consequential takeover battles in media history.
At the centre of the dispute is a deal Netflix struck in late 2025 to purchase Warner Bros.’ studios and streaming business for $82.7 billion, or $27.75 per share. Under the terms of that agreement, Warner Bros. Discovery stockholders are to vote on the transaction at a special meeting scheduled for 20 March 2026. Netflix has maintained that its offer structured as a combination of cash and stock provides a reliable path to closing while preserving competitive value for shareholders.
Despite Warner Bros. Discovery’s board recommending shareholders approve the Netflix merger, the company granted a seven day waiver allowing discussions with Paramount Skydance so that Paramount could present what Warner Bros. calls its “best and final offer” following a deadline set for 23 February 2026. Netflix agreed to this waiver to enable Warner Bros. Discovery to consider all potential bids and clarify outstanding concerns about Paramount’s proposal.
Paramount Skydance, led by CEO David Ellison, has counter offered with what many observers describe as a hostile takeover bid valued at an initial $108.4 billion or roughly $30 per share for the entire Warner Bros. Discovery organisation, including its linear television networks along with studios and streaming units. Paramount’s offer also includes incentives such as a “ticking fee,” estimated at around 25 cents per share per quarter beginning in 2027 to compensate shareholders if the transaction closes slowly. Additionally, Paramount pledged to cover the $2.8 billion termination fee that Warner Bros. Discovery would owe Netflix if the Paramount bid prevails.
Netflix’s defence of its bid has emphasised certainty of financing, strategic clarity and operational continuity, particularly for the iconic creative assets and global distribution platforms that Warner Bros. owns. Netflix executives argue that their all cash offer for the studio and streaming businesses, coupled with a planned spin off of Warner Bros.’ linear networks into a separate entity called Discovery Global, gives shareholders upside through both immediate value and future flexibility.
Critics of Paramount’s bid, including some financial analysts, caution that simply offering a higher price per share does not guarantee a smoother transaction. Paramount has asserted that it has completed certain regulatory waiting periods, such as the Department of Justice’s Hart Scott Rodino antitrust review, but independent expert commentary suggests that these milestones do not equate to full regulatory approval. That means both bids may face significant oversight by U.S. and international competition authorities before they can close.
The competitive dynamic has heightened as the February deadline nears. Warner Bros. Discovery has reportedly rejected Paramount’s revised offer and invited the company to return with a refined proposal that addresses concerns about financing certainty and other terms. If Paramount meets the deadline with a sufficiently compelling bid, Netflix retains the right to match it under the terms of their merger agreement.
Shareholder response has also been a major factor. Netflix’s deal has been supported by Warner Bros. Discovery’s board, which continues to recommend that shareholders vote in favour of the merger with Netflix citing strategic value and a clear path through regulatory review while urging them to reject Paramount’s offer. The willingness of Warner Bros.’ board to engage with Paramount for a limited period reflects the board’s duty to consider alternatives that might offer superior value to investors.
Political pressures have also surfaced as part of the broader narrative. Public commentary from influential figures including remarks about Netflix board composition has at times influenced market sentiment and contributed to fluctuations in streaming and studio stock prices, underscoring the intersection of corporate strategy and public perception during major media transactions.
As negotiations approach critical inflection points, analysts and industry stakeholders will be watching shareholder sentiment, regulatory reviews and potential revisions to both bids. The outcome will shape not only the future of Warner Bros. Discovery but the broader competitive landscape of global media and entertainment from streaming expansion to theatrical releases and content franchising strategies.