Bidding War Intensifies for Warner Bros. Discovery as Netflix Faces Paramount Challenge

Warner Bros. Discovery's fate hangs in the balance as Netflix's $82.7B cash offer competes with a higher $108.4B bid from Paramount Skydance. Shareholders vote March 20.

The contest for control of Warner Bros. Discovery (WBD) has entered a critical phase, with streaming leader Netflix and a consortium led by Paramount Skydance locked in a high-stakes acquisition battle. The fight centers on one of Hollywood's most prized media portfolios, with recent developments adding layers of corporate strategy and public controversy.

Financial Firepower and a Temporary Truce

Netflix currently holds the recommended position from the WBD board with an all-cash offer of $27.75 per share. This bid values the studio and streaming assets at approximately $82.7 billion. Its rival, the Paramount Skydance group, has countered with a proposal of $30 per share for the entire company, implying a total valuation of around $108.4 billion.

In a notable strategic move, Netflix granted Warner Bros. Discovery a limited negotiation window. On February 17, WBD announced it had received an exception from Netflix, allowing it to engage in talks with Paramount Skydance until February 23. Netflix Co-CEO Ted Sarandos framed this decision as an effort to provide shareholders with "complete clarity and certainty," stating that Paramount had previously "flooded the zone with confusion."

Despite these parallel discussions, the WBD board has reaffirmed its support for the Netflix transaction. Shareholders are scheduled to vote on the deal on March 20. The board has highlighted the offer's "tremendous value" and a "clear path to timely regulatory approval."

Analyst Perspective and Financial Capacity

Market observers note that Netflix possesses significant resources to increase its bid if necessary. The company reported holding roughly $9.03 billion in liquid cash and equivalents as of December 31, 2025. This war chest provides ample room for a potential counter-offer should Paramount Skydance enhance its proposal.

"Netflix appears to remain in the driver's seat for now, but that position could shift rapidly," commented Matt Britzman, a senior equity analyst at Hargreaves Lansdown. "Price is likely to be the decisive factor in the end."

Hollywood Opposition and Public Relations

The corporate maneuvering has spilled into the public arena, attracting criticism from prominent industry figures. On February 19, acclaimed director James Cameron entered the fray by sending a letter to Senator Mike Lee. Cameron warned that a Netflix acquisition would be "catastrophic for the theatrical business," expressing skepticism that the streamer's verbal commitments to theatrical releases would endure. Such promises, he argued, would "likely fizzle out in a few years."

In response, Netflix has pointed to its recent congressional testimony and its substantial content investment plans. The company has budgeted $20 billion for film and television production in 2026, with a focus on American projects. Sarandos has repeatedly characterized the proposed merger as "pro-consumer, pro-innovation, and pro-worker."

Regulatory Scrutiny Looms for All Parties

Both potential transactions face rigorous regulatory examinations. Netflix emphasizes the "clear path" for its largely vertical merger to gain swift regulatory consent. Both companies have submitted Hart-Scott-Rodino filings and are in dialogue with competition authorities globally.

The Paramount Skydance offer encounters its own set of potential obstacles. Critics have pointed to the involvement of foreign financing from Middle Eastern sovereign wealth funds. Consequently, Netflix anticipates that its rival's bid will undergo review by the Committee on Foreign Investment in the United States (CFIUS) and European regulators concerning these investors.

The outcome of the Warner Bros. Discovery shareholder vote on March 20 will determine whether Netflix can maintain its current advantage or if the escalated bidding war will demand a new strategy.