❓WHAT HAPPENED: Warner Bros. Discovery is reviewing an enhanced bid from Paramount Skydance to acquire the company, while maintaining a merger agreement with Netflix.
👤WHO WAS INVOLVED: Warner Bros. Discovery, Paramount Skydance, Netflix, and their respective boards.
📍WHEN & WHERE: The announcement was made on Tuesday, with ongoing discussions between the companies.
💬KEY QUOTE: “This deal isn’t about efficiency. It isn’t about innovation. It isn’t even about competition. It’s about control—over content, over distribution, over culture, and over what Americans are allowed to see, hear, and believe.” — Former Congressman Matt Gaetz (R-FL) on Netflix’s planned merger with Warner Bros. Discovery
🎯IMPACT: The bidding war intensifies as Paramount Skydance aims to acquire all Warner Bros. Discovery assets, while Netflix focuses on its studio and streaming business.
Warner Bros. Discovery revealed on Tuesday that it is reviewing an enhanced bid from Paramount Skydance to acquire the entertainment giant. While the terms of the offer were not disclosed, Paramount Skydance is attempting to secure a deal that would outmaneuver Netflix, which previously struck a $27.75 per share merger agreement with Warner Bros. Discovery in December, valued at $82.7 billion.
“Following engagement with PSKY during the seven-day limited waiver period, we received a revised PSKY proposal to acquire WBD, which we are reviewing in consultation with our financial and legal advisors,” Warner Bros. Discovery said in a statement, adding, “We will update our shareholders following the Board’s review. The Netflix merger agreement remains in effect, and the Board continues to recommend in favor of the Netflix transaction.”
The latest bid from Paramount Skydance comes after Warner Bros. Discovery resumed talks with the company following its prior $30 per share offer. Paramount Skydance has argued that its proposal is financially superior and warned that Netflix’s bid could face U.S. antitrust challenges. The Netflix deal focuses solely on Warner Bros. Discovery’s studio and streaming business, while Paramount Skydance’s offer includes all of the company’s assets.
Warner Bros. Discovery owns a vast array of assets, including HBO, CNN, the Harry Potter franchise, and cable channels like Food Network, HGTV, TBS, and TNT. Former Congressman Matt Gaetz (R-FL) warned in The National Pulse in January that the Netflix-Warner Bros. Discovery merger “isn’t about efficiency. It isn’t about innovation. It isn’t even about competition. It’s about control—over content, over distribution, over culture, and over what Americans are allowed to see, hear, and believe.”
Notably, Netflix co-founder Reed Hastings is a Democrat mega-donor who backed several Never Trump political groups and Kamala Harris’s 2024 presidential campaign.
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