The race to acquire Warner Bros. Discovery is entering its decisive stage, with Netflix positioned as the front-runner. However, a competing bid from a consortium involving Paramount and Skydance has introduced a last-minute twist, keeping the outcome uncertain until a key shareholder vote next month.
Warner Bros. Discovery has scheduled a special meeting for March 20, 2026, where shareholders will decide on Netflix’s acquisition proposal. In a parallel development, the company granted Paramount Skydance a one-week negotiation window, set to expire on February 23, to potentially submit an improved offer.
Key Deal Points at a Glance:
- The definitive shareholder vote is scheduled for March 20, 2026.
- Netflix’s current bid stands at $27.75 per share in cash.
- Paramount Skydance has signaled a willingness to raise its offer to $31 per share.
- Warner’s board of directors has formally recommended the Netflix proposal.
- The negotiation window for a competing bid closes on February 23.
A Higher, Yet Riskier, Alternative
The rival consortium, Paramount Skydance, initially tabled a hostile takeover bid of $30 per share. Regulatory filings reveal that a representative indicated a price increase to $31 per share could be possible if formal discussions were reopened. Beyond the per-share premium, the group’s offer includes $2.8 billion to cover a potential breakup fee payable to Netflix and provisions for quarterly delay compensation.
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Despite the nominally superior financial terms, Warner’s board has rejected this overture. Directors cited excessive financing and execution risks as the primary reasons for their skepticism.
Netflix Counters with Regulatory and Debt Concerns
In defense of its agreement, Netflix is emphasizing the smoother regulatory pathway it anticipates. The company argues its proposed vertical merger presents clearer antitrust approval prospects compared to a rival deal. Netflix also highlights the significant debt burden associated with the Paramount Skydance alternative, warning that a combined entity would carry pro-forma debts totaling $84 billion. To achieve profitability, the rival group would need to identify cost savings of approximately $16 billion—a scenario Netflix portrays as highly unrealistic.
Financial Backdrop of a High-Stakes Battle
This takeover contest unfolds against a complex financial landscape for the streaming giant. Netflix reported fourth-quarter 2025 revenues of $12.05 billion, surpassing market expectations. Nevertheless, its share price trades notably below the peaks reached in June 2025. To preserve capital for the potential Warner acquisition and continued content investment, Netflix has suspended its share repurchase program. The company also recently streamlined its product division in mid-February, eliminating several dozen positions—less than one percent of the department’s workforce.
The final decision now rests with Warner Bros. Discovery shareholders on March 20. However, the narrative could shift before then, depending on whether Paramount Skydance formally elevates its bid to $31 per share by February 23 and whether such a move could sway the Warner board’s recommendation.
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