Netflix and Paramount Battle for Warner

What's happened

As of January 22, 2026, Netflix has revised its $82.7 billion offer for Warner Bros. Discovery (WBD) to an all-cash deal of $27.75 per share, removing the stock component to simplify the transaction and accelerate shareholder voting to April. WBD's board supports Netflix's bid over Paramount Skydance's hostile $108 billion all-cash offer for the entire company. Paramount continues legal and proxy battles, disputing WBD's valuation of its cable assets, which Netflix excludes from its purchase.

What's behind the headline?

Strategic Stakes and Bid Structures

Netflix and Paramount Skydance are locked in a high-stakes bidding war for Warner Bros. Discovery, with fundamentally different acquisition strategies. Netflix targets only the studio and streaming assets, including HBO Max, offering $27.75 per share all in cash after removing the stock component to simplify the deal and accelerate shareholder approval. Paramount seeks to acquire the entire company, including cable networks such as CNN and TNT, with a $30 per share all-cash hostile bid valued at over $108 billion including debt.

Valuation Disputes and Legal Battles

A critical point of contention is the valuation of WBD's cable assets, which Netflix excludes but Paramount includes. Paramount argues these assets are worth little to nothing, while WBD estimates their value between $1.33 and $6.86 per share. Paramount has pursued legal action to compel WBD to disclose detailed financial analyses, but courts have so far sided with WBD, rejecting Paramount's requests for expedited disclosure.

Board Support and Shareholder Dynamics

WBD's board unanimously supports the Netflix deal, emphasizing the certainty of an all-cash transaction and the expedited timeline for shareholder voting, now expected by April 2026. Paramount has extended its tender offer deadline to February 20, 2026, and plans a proxy fight to nominate directors supportive of its bid, signaling a prolonged contest.

Regulatory and Political Considerations

Both deals face significant antitrust scrutiny, with the Netflix acquisition combining the top streaming services and Paramount's bid consolidating major media assets under one roof. Political factors loom large, with President Donald Trump publicly expressing interest in the outcome and personal connections to both bidders influencing perceptions.

Outlook

The battle for WBD is poised to be protracted and complex, involving legal challenges, regulatory reviews, and shareholder persuasion. Netflix's move to an all-cash offer strengthens its position by reducing deal uncertainty, but Paramount's broader acquisition scope and aggressive tactics keep the contest open. Shareholders and regulators will play decisive roles in determining the future of one of the largest media companies globally.

How we got here

Warner Bros. Discovery agreed in December 2025 to sell its studio and streaming assets to Netflix for $82.7 billion in a cash-and-stock deal. Paramount Skydance launched a hostile all-cash $108 billion bid for the entire company, including cable networks like CNN. WBD's board has repeatedly backed Netflix's offer, citing greater certainty and a simpler structure, while Paramount has challenged the process legally and through a proxy fight.

Our analysis

The New York Post's Charles Gasparino reports on Paramount Skydance's extension of its tender offer deadline without raising its $30 per share bid, highlighting the ongoing legal and proxy battles led by David Ellison and his father Larry Ellison. Gasparino notes Paramount's skepticism about Netflix's valuation of WBD's cable assets and the regulatory hurdles Netflix faces, especially in Europe and the UK. Reuters and The Independent detail the legal setbacks Paramount has faced, including a Delaware court's rejection of its expedited disclosure request, with Warner Bros. Discovery calling Paramount's lawsuit a distraction. The Independent emphasizes the board's unanimous support for Netflix's revised all-cash offer and the planned shareholder vote by April. Sky News and Al Jazeera provide context on Netflix's revised all-cash bid, underscoring the simplification of the deal and the accelerated shareholder vote timeline. They contrast Netflix's focus on studio and streaming assets with Paramount's bid for the entire company, including cable networks. Business Insider UK offers a detailed financial analysis of the competing bids, focusing on the valuation of WBD's cable networks and how this affects the perceived superiority of each offer. It explains the complex adjustments WBD applies to Paramount's bid and the implications for shareholders. The New York Times and The Guardian frame the broader industry and political implications, noting the potential for significant antitrust scrutiny and President Trump's unusual involvement in the approval process. They also highlight the strategic importance of the deal for the future of streaming and media consolidation. Together, these sources paint a picture of a fierce, multifaceted battle for Warner Bros. Discovery, with legal, financial, regulatory, and political dimensions shaping the outcome.

Go deeper

• What are the main differences between Netflix's and Paramount's bids for Warner Bros. Discovery?
• How does the valuation of Warner Bros. Discovery's cable assets affect the takeover battle?
• What role does political influence play in the Warner Bros. Discovery acquisition process?

More on these topics

• Netflix - Production company

  Netflix, Inc. is an American technology and media services provider and production company headquartered in Los Gatos, California. Netflix was founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California.

• Warner Bros. Discovery - American mass media and entertainment conglomerate

  Warner Bros. Discovery is an upcoming American multinational mass media and entertainment conglomerate. The company will be formed though the merger of WarnerMedia and Discovery, Inc., which is expected to be completed by mid-April 2022.

• Larry Ellison - American business magnate

  Lawrence Joseph Ellison is an American business magnate, investor, and philanthropist who is a co-founder and the executive chairman and chief technology officer of Oracle Corporation.

• David Ellison - American film producer

  David Ellison is an American film producer and the founder and CEO of Skydance Media.

• Paramount Global - Mass media company

  ViacomCBS Inc. is an American diversified multinational mass media conglomerate formed through the merger of CBS Corporation and the second incarnation of Viacom in 2019, which were split from the original incarnation of Viacom in 2005.

• Ted Sarandos - Chief Executive Officer of Netflix

  Theodore Anthony Sarandos Jr. is an American businessman who serves as the co-chief executive officer and chief content officer for Netflix.

• David Zaslav - Chief Executive Officer of Discovery Communications

  David M. Zaslav is the president and chief executive officer of Discovery Inc., a position he has held since January 2007. Most recently under Zaslav, Discovery acquired Scripps Networks Interactive, in a transaction which closed in March 2018.

• Paramount Pictures - Film company

  Paramount Pictures Corporation is an American film studio and subsidiary of ViacomCBS. It is the fifth oldest film studio in the world, the second oldest film studio in the United States, and the sole member of the "Big Five" film studios still located in

• Reed Hastings - American entrepreneur and education philanthropist

  Wilmot Reed Hastings Jr. (born October 8, 1960) is an American billionaire businessman. He is the co-founder of Netflix, which provides the eponymous streaming service. Hastings serves on a number of boards and works with various non-profit organizations.

• Ryan McLeod - Ice hockey player

  Ryan McLeod is a Canadian professional ice hockey forward who is currently playing for the Edmonton Oilers in the National Hockey League.