Bidding War Intensifies for Media Giant Warner Bros. Discovery

Warner Bros. Discovery (A) US9344231041

A high-stakes corporate contest for control of Warner Bros. Discovery Inc. (A) is escalating, with streaming leader Netflix and media conglomerate Paramount Global each refining their acquisition strategies. Shareholders now face a critical choice between two distinct approaches, setting the stage for a pivotal decision in the coming weeks.

Refusing to back down, Paramount Global has taken its offer directly to Warner Bros. Discovery shareholders. On January 22, the company filed its own proxy materials and extended the tender offer deadline for its bid to February 20, 2026. This move signals a clear determination to pursue the acquisition despite resistance from the target's board.

Paramount's proposal remains a fully cash offer of $30 per share, valuing the entire transaction at approximately $108.4 billion. This bid was previously rejected by the Warner Bros. Discovery board of directors, prompting Paramount's shift to a shareholder-centric, hostile takeover tactic.

Netflix Adjusts Tactics for a Faster Path

In a significant strategic shift on January 20, Netflix revised its initial proposal. The company converted its earlier mixed cash-and-stock offer into an all-cash bid of $27.75 per share. The total value of this revised offer stands at roughly $82.7 billion.

Netflix's rationale for this change centers on expediency. By eliminating the stock component, the company aims to streamline the approval process, potentially securing both shareholder and regulatory consents more rapidly. A shareholder vote could occur as soon as April 2026. Netflix has arranged financing through a combination of its own resources, credit facilities, and committed debt financing. Coinciding with this revised offer, Warner Bros. Discovery submitted a preliminary proxy statement to the SEC on the same date.

Shareholders Hold the Key to Valuable Assets

The ultimate decision rests with Warner Bros. Discovery's investors, who must weigh the competing proposals. The prize includes a portfolio of premier media assets, such as the Warner Bros. film and television studios, the HBO network, and the DC Universe franchise. It has been clarified that rights to properties like "Barbie" remain with Mattel Inc. and are excluded from the potential acquisition.

The contrasting strategies present a clear dilemma. Netflix's all-cash offer emphasizes speed and transactional certainty. Conversely, Paramount counters with a higher per-share price and a demonstrated willingness to circumvent management opposition. The February 20, 2026 deadline for Paramount's tender offer will serve as an initial indicator of shareholder sentiment, with the outcome of this corporate battle likely decided in the near term.