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StocksMediumUpdated×4•Originally published 26 February 2026•Updated 26 February 2026•

1 min read

WBD Board Favors Netflix Despite Paramount Skydance's $31 All-Cash 'Superior Proposal'

Key Facts

1Warner Bros. Discovery reported lower fourth-quarter revenue driven by declines across all business segments.

2The results come amid a high-stakes bidding war involving Netflix and Paramount Skydance.

Paramount Skydance Corporation (PSKY) was formally notified on February 26, 2026, that its $31-per-share all-cash offer was designated a "superior proposal" by the Warner Bros. Discovery (WBD) board. However, reports from CNBC suggest that the WBD board still strategically favors a potential merger with Netflix despite the legal classification of the Paramount bid. The all-cash nature of the PSKY proposal intensifies the pressure on Netflix, which now has a critical 4-day window to respond with a counter-offer. This development comes as WBD navigates a complex financial landscape, following recent reports of steady $9.5 billion revenues amid a 23% slump in studio earnings. Market analysts are currently weighing the certainty of Skydance's cash offer against the long-term strategic synergy the board envisions with Netflix. The outcome of this bidding war is expected to redefine the global entertainment and streaming landscape.

5 months ago

Version History

Version 45 months ago

What changed: Identified the bidder as Paramount Skydance Corporation (PSKY), clarified the $31/share bid is all-cash, and added the nuance that the WBD board still favors the Netflix deal per CNBC.

Version 35 months ago

What changed: The story shifted from general M&A speculation to a formal bidding war, with Paramount's $31/share offer being labeled 'superior' and a strict 4-day deadline set for Netflix.

Version 25 months ago

What changed: The story was updated to include specific financial figures, noting that the $9.5 billion revenue met expectations and highlighting a 23% drop in adjusted earnings for the studio segment.

Version 15 months ago

What changed: The story was updated to include the specific revenue decline figure (6%) and highlight the positive subscriber growth within the HBO Max streaming segment.