Warner Bros. Discovery: A Bidding War Heats Up
The future of Warner Bros. Discovery (WBD) hangs in the balance as a fierce bidding war unfolds between Netflix and Paramount Skydance. Since fall 2025, WBD has been a prime acquisition target, and the situation reached a critical point this week with revised offers and strategic maneuvering.
Paramount’s Revised Offer and the Regulatory Factor
Paramount Skydance has upped its bid for WBD, now standing at $108.4 billion as of February 21, 2026. A key component of the revised proposal is a $7 billion regulatory termination fee, designed to reassure WBD in the event the deal faces hurdles from regulators. This move signals Paramount’s strong commitment to acquiring WBD’s assets.
Netflix Remains in the Game
Despite Paramount’s increased offer, the existing merger agreement between WBD and Netflix “remains in place.” Netflix has the opportunity to match Paramount’s bid, and analysts anticipate they will. Netflix previously revised its all-cash offer last month, demonstrating its willingness to invest significantly in securing WBD. Should Netflix choose not to counter, they would face a $2.8 billion breakup fee.
A Hostile Bid and Shareholder Considerations
Paramount’s pursuit of WBD has taken the form of a hostile takeover bid, directly appealing to WBD shareholders. Previously offering $30 per share, Paramount’s new proposal is $31 per share. WBD’s board has acknowledged that Paramount’s proposal “could reasonably be expected to lead to a ‘Company Superior Proposal’,” but has not yet made a final determination.
The Timeline and Next Steps
WBD granted Paramount a seven-day window to present its “best and final” offer. Netflix has four days to respond once the WBD board officially deems Paramount’s bid superior. WBD will hold a special shareholder meeting on March 20 to vote on the Netflix deal, currently valued at $27.75 per share.
Political Interference and Industry Concerns
The proposed merger has even attracted political attention. President Donald Trump recently urged Netflix to remove board member Susan Rice or “pay the consequences.” Netflix co-CEO Ted Sarandos dismissed the comments as typical social media activity, emphasizing the deal’s business-focused nature. Paramount’s bid has also drawn criticism, with Netflix asserting that Paramount’s “financing challenges and rapid deleveraging plans pose tremendous risk to the entertainment industry.”
WBD’s Internal Strategy
WBD CEO David Zaslav has communicated to employees that the company’s focus remains on its planned separation into two publicly traded entities and integration planning with Netflix. This suggests WBD is proceeding with both potential paths simultaneously.
FAQ
- What is the current status of the WBD acquisition? The acquisition is pending, with competing bids from Netflix and Paramount Skydance.
- What is the value of Paramount Skydance’s latest bid? $108.4 billion (as of February 21, 2026).
- What happens if Netflix doesn’t match Paramount’s bid? Netflix will pay a $2.8 billion breakup fee.
- When will WBD shareholders vote on the Netflix deal? March 20.
Pro Tip: Keep a close eye on regulatory approvals, as these could significantly impact the outcome of the acquisition.
Stay tuned for further updates as this high-stakes bidding war continues to unfold. What are your thoughts on the potential outcomes? Share your predictions in the comments below!
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