Netflix’s Landmark Acquisition Bid Gains Momentum as Rival Offer Fades

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The streaming giant Netflix is advancing its proposed acquisition of Warner Bros. Discovery (WBD), with pivotal steps anticipated in early 2026. Following the formal rejection by WBD's board of a competing, unsolicited bid from Paramount Skydance, the Netflix arrangement is now viewed as the leading contender. Netflix shares have recently demonstrated stability, trading around $94.35, even as merger discussions dominate industry headlines.

• Netflix's proposed transaction values WBD at $82.7 billion in a cash-and-stock deal.
• WBD's board dismissed a competing, fully cash-financed hostile bid of $108.4 billion from Paramount Skydance.
• Netflix has strengthened its financial position by refinancing a major credit facility.
• Regulatory reviews and Q4 2025 financial results, due in January 2026, represent the next critical milestones.

Announced on December 5, 2025, Netflix's strategy involves a $82.7 billion transaction to acquire WBD's streaming and studio assets. Plans indicate that WBD's linear television networks would be spun off into a separate entity.

These acquisition plans faced immediate pressure when Paramount Skydance presented its all-cash, $108.4 billion hostile offer on December 8. However, by December 17, the WBD board of directors had clearly positioned itself against the Paramount proposal. The board cited "operational risks" and emphasized the greater strategic certainty it associates with the Netflix deal.

Consequently, the Netflix transaction is currently in the lead, although formal shareholder approval has not yet been secured.

Addressing Industry Concerns and Shareholder Communications

In parallel, Netflix is working to alleviate concerns within the creative community. In a December 15 memo to staff, Co-CEOs Greg Peters and Ted Sarandos explicitly committed to maintaining theatrical releases for Warner Bros. films. This assurance aims to mitigate worries from guilds and creators about a shift to an exclusive streaming model.

On the financing front, Netflix took additional steps to secure the transaction. The company refinanced a portion of a $59 billion credit line on December 22, a move interpreted as signaling solid banking support for the ambitious undertaking.

Separately, on December 24, Netflix informed shareholders of an unsolicited "mini-tender" offer from TRC Capital Investment. The financial investor proposed to buy up to 1.25 million shares at $91.00 each—a price below the current market rate. This volume represents less than 0.03% of outstanding shares. Netflix has advised investors to reject this offer.

Market Implications and Strategic Rationale

This planned acquisition represents Netflix's most significant expansion move to date. The core strategic aim is deeper vertical integration: gaining access to Warner's extensive film library and the HBO brand would substantially enhance Netflix's role as both a producer and a rights holder.

Market reaction has been cautiously positive. With shares hovering near $94.35, Netflix commands a market capitalization of approximately $431.6 billion. This price level positions the stock well above its 52-week low of $82.11, though it remains below the yearly high of $134.12. The stable trading pattern suggests investors currently assign a high probability to the deal's successful completion.

The Road Ahead in Early 2026

The focus now shifts squarely to the beginning of 2026. Key documents are scheduled for submission to U.S. antitrust authorities in January, including for review by the Federal Trade Commission concerning market position in the premium streaming segment.

The next major milestone is the Q4 2025 earnings report on January 20, 2026. Market participants expect further details on the integration roadmap and the planned spin-off of the "Discovery Global" entity. From a technical analysis perspective, the price zone around $93 is currently seen as a key support level, with its defense considered important for the ongoing consolidation pattern as the year transitions.