Warner Bros. (WBD) supports the acquisition of Netflix (NFLX), Paramount Skydance (PSKY) stock declines
After Warner Bros. Discovery (WBD) supported Netflix's acquisition offer instead of Paramount Skydance's, both WBD and PSKY shares fell on Wednesday. Meanwhile, as the market expects Netflix to win this acquisition battle, NFLX shares rose.
According to reports, the Warner Bros. board has rejected Paramount Pictures' $108.4 billion acquisition offer and decided to support Netflix's current $72 billion proposal to acquire Warner Bros.' film and television studios as well as HBO Max. The deal will be completed after Warner Bros. spins off its television network (Discovery Global) in the third quarter of 2026.
Warner Bros. (WBD) stated that its board unanimously believes the acquisition offer made by Paramount Skydance Media on December 8, 2025, is not in the best interests of WBD and its shareholders, and does not meet the definition of a "superior proposal" as outlined in the merger agreement signed with Netflix on December 5, 2025. The board recommends that WBD shareholders reject Paramount Skydance's acquisition offer. It is currently unclear whether Warner Bros. will ultimately choose Netflix's or Paramount's offer, but Netflix's offer is currently in the lead.
On the other hand, it is not yet clear whether Paramount and David Ellison will raise their offer. Paramount's all-cash acquisition proposal of $30 per share is higher than Netflix's cash plus stock offer of $27.75 per share, which will expire on January 8, 2026 (UTC+8). Ellison must decide whether to raise the offer before then. Paramount stock (PSKY) fell 5% on Wednesday, while Netflix stock (NFLX) closed down 2.39%.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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