Executives from Warner Bros. Discovery (WBD) and Paramount Skydance have been engaged in intensive negotiations over the past week, leading to expected developments in the competitive landscape of media acquisitions. The WBD board is anticipated to inform shareholders before the market opens on Tuesday that it is reviewing a recent bid while still endorsing the ongoing Netflix deal, which is set for a vote on March 20.
Both WBD and Paramount Skydance refrained from commenting on the situation late Monday, leaving details about the financial terms of the new offer unclear.
The past week saw WBD’s board trying to gain Netflix’s approval to enter discussions with Paramount regarding what the latter has described as its “best and final offer.” In a letter addressed to Paramount’s board, WBD CEO David Zaslav and board chairman Samuel Di Piazza Jr. requested clarification on Paramount’s proposal, which reportedly includes a price per share above $31 for WBD.
If WBD moves forward with the Paramount Skydance proposal, the next step lies with Netflix. The streaming giant has only four days to either match Paramount’s bid or withdraw from the bidding war. A source close to the negotiations emphasized that WBD is legally obligated to recommend its agreement with Netflix, which is valued at nearly $83 billion. In contrast, Paramount has presented a $108 billion offer to acquire the entirety of WBD, encompassing its cable channels. For context, Netflix’s agreement would see it purchasing Warner Bros. and HBO Max for $27.75 per share in cash, a shift from its previous cash-and-stock offer.
Netflix co-CEO Ted Sarandos, during a Feb. 20 interview with Variety, did not disclose how the platform might react to a more substantial offer from Paramount. He mentioned, however, that Netflix has a “rich history” of being willing to let potential bidders “overpay” for acquisitions if the price is not right for them.
The groundwork for the negotiations was laid when tech billionaire Larry Ellison approached Zaslav back in September 2025, initially proposing $19 per share for Warner Bros. Discovery—just weeks following Skydance Media’s acquisition of Paramount Global. Paramount’s increasing interest in WBD led the board to commence a formal mergers and acquisitions review process, ultimately selecting Netflix as the preferred bidder despite having previously dismissed Paramount’s takeover offers on nine separate occasions.
The financial backing for Paramount’s current bid comes from a coalition that includes Ellison along with RedBird Capital Partners, and secured financing from major financial institutions such as Bank of America, Citigroup, and Apollo Global Management. Additionally, the bid is supported by the sovereign wealth funds of Saudi Arabia, Qatar, and Abu Dhabi, indicating significant financial clout behind the offer.
