Key Takeaways
- Paramount Skydance submitted an enhanced bid for WBD surpassing $31 per share
- The board continues backing Netflix’s $27.75 per share agreement while evaluating alternatives
- Netflix retains a four-day matching right should the board determine Paramount’s proposal is superior
- CEO David Ellison remains determined to secure the acquisition
- Shareholders will vote on the Netflix transaction March 20
The battle for Warner Bros. Discovery has intensified as Paramount Skydance submits an increased acquisition proposal, marking a significant development in this high-profile media sector transaction.
Warner Bros. Discovery, Inc., WBD
Paramount’s latest submission surpasses its earlier all-cash proposal of $30 per share. Sources familiar with the matter informed Bloomberg of the development, though specific financial details haven’t been publicly disclosed. The submission arrived before Paramount’s seven-day negotiating period expired on Monday, February 23.
Industry publication Variety indicates the updated proposal likely exceeds $31 per share. Warner Bros. Discovery plans to notify investors Tuesday morning that it will evaluate Paramount’s submission, though management continues endorsing the existing Netflix arrangement.
Netflix reached an agreement to purchase WBD’s entertainment properties, including film, television, and HBO divisions, for $27.75 per share in cash. Paramount’s proposal encompasses the entire Warner Bros. Discovery entity.
Should the board determine Paramount’s submission represents a superior value proposition, Netflix maintains a four-day period to submit a competing offer.
Paramount CEO Demonstrates Unwavering Commitment
Paramount chief executive David Ellison has made his intentions clear: withdrawing from this pursuit isn’t under consideration.
On February 10, Ellison modified his proposal by incorporating a quarterly ticking fee mechanism, breakup fee provisions for Netflix, and debt refinancing expense coverage — all while maintaining the $30 per share valuation. Warner Bros. Discovery subsequently resumed discussions after Ellison’s representatives verbally committed to increasing the bid to $31 or higher.
The Paramount proposal enjoys financial backing from Oracle chairman Larry Ellison, RedBird Capital Partners, and sovereign investment vehicles from Saudi Arabia, Qatar, and Abu Dhabi.
Washington Takes Notice
This transaction has attracted scrutiny from political circles. Congressional representatives and entertainment industry professionals have voiced apprehensions regarding media industry consolidation and employment implications.
President Trump amplified tensions during the weekend by publicly calling for Netflix to remove board member Susan Rice — who previously served in the Obama and Biden administrations — warning of unspecified repercussions.
Market Developments and Upcoming Events
PSKY shares advanced 1.2% during after-hours trading following disclosure of the enhanced proposal.
The shareholder referendum on Netflix’s acquisition remains on the calendar for March 20. Any board decision to seriously consider Paramount’s alternative could affect this schedule.
Paramount will disclose its fourth quarter fiscal 2025 financial results Wednesday, February 25, after market hours. Analysts anticipate an adjusted loss of $0.01 per share, improving from the $0.11 loss reported in the comparable period last year. Revenue projections stand at $8.15 billion, representing 2.1% year-over-year growth.
Wall Street analysts assign PSKY a Moderate Sell consensus rating on TipRanks — comprising zero Buy recommendations, one Hold rating, and three Sell ratings — with a mean price objective of $12.33.
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