Media Giants Battle for Warner Bros. Discovery
The battle for control of media conglomerate Warner Bros. Discovery (WBD) is intensifying, with Netflix and Paramount Skydance locked in a high-stakes contest. The potential deal, which could significantly reshape the entertainment landscape, is valued in the tens of billions of dollars. The outcome will likely have broad implications for the future of streaming and traditional media.
Paramount Skydance Sweetens its Bid
Paramount Skydance, led by David Ellison, has bolstered its offer to acquire WBD, adding financial incentives to persuade shareholders to support the transaction. Announced on February 10, 2026, the revised proposal includes additional payments for each quarter the deal remains unclosed after the beginning of 2026, as well as a commitment to cover WBD’s expenses should it terminate its agreement with Netflix. A key component of the new offer is a “ticking fee” of $0.25 per share per quarter – approximately $650 million per quarter – beginning January 1, 2027, until the deal is finalized. Paramount Skydance is also offering to cover a $2.8 billion breakup fee that WBD would owe Netflix if it were to finish their prior agreement. This move is part of an effort to overcome hurdles related to regulatory approval and objections from WBD’s management to the initial Paramount Skydance offer. The total value of Paramount Skydance’s bid now reaches $108.4 billion.
Netflix Initially Agreed to a Deal, WBD Board Weighs Options
Netflix initially reached an agreement to acquire parts of WBD, announcing on December 5, 2025, a deal to purchase the company’s studio and streaming divisions for $82.7 billion. This would have given Netflix ownership of WBD’s film and television studios, HBO Max, and other assets. But, Paramount Skydance countered with a competing $74.4 billion offer in December 2025, urging shareholders to reject the Netflix deal. Paramount’s proposal also included the acquisition of WBD’s cable television assets, including CNN, which were not part of Netflix’s offer. While the WBD board previously deemed Paramount Skydance’s offer inadequate, This proves currently reviewing it. As of early 2026, the WBD board publicly urged shareholders to reject the Paramount Skydance offer, citing the high level of new debt the deal would require.
Regulatory Concerns and Next Steps
The proposed acquisition has raised concerns about market concentration, and competition. The administration of former U.S. President Donald Trump has expressed concerns about potential Netflix dominance in the U.S. Content market. Paramount Skydance argues that its acquisition would not give Netflix market dominance, which could be an advantage in the regulatory approval process. Both offers require regulatory clearance, a process that could take 12 to 18 months. The next step is expected to be a shareholder vote at an upcoming shareholder meeting in March or early April 2026. If shareholders approve the Paramount Skydance offer, it could substantially alter the media and entertainment industry landscape. You can find more information about the proposed acquisition of Warner Bros. Discovery here.
The competition between Netflix and Paramount for Warner Bros. Discovery reflects the ongoing consolidation within the entertainment industry as companies seek scale and competitive advantages in the streaming era, as reported by the BBC.
