Paramount Skydance Positioned to Acquire Warner Bros After Netflix Withdraws Bid

Paramount Skydance is on track to acquire Warner Bros. Discovery (WBD) in a transaction valued at approximately $111 billion after Netflix officially withdrew its competing bid on February 27, 2026.

Paramount’s revised all-cash proposal has been deemed “superior” by WBD’s board and now supersedes Netflix’s earlier offer.

The deal, which spans the full WBD business rather than selected assets, is poised to reshape the U.S. media landscape but remains subject to regulatory review and antitrust scrutiny before closing later this year.

Key Deal Terms

Winning Bid: Paramount’s all-cash offer stands at $31 per share, a level the WBD board declared superior to Netflix’s previous proposal.

Termination Fees: Paramount has agreed to pay $2.8 billion in breakup fees owed to Netflix as part of terminating the prior agreement between Netflix and WBD.

Reverse Termination Fee (Regulatory Safeguard): To address potential antitrust hurdles, Paramount included a $7 billion reverse termination fee payable if regulators ultimately block the merger.

Scope of Acquisition: Paramount’s bid covers the entirety of WBD’s assets, including:

• Linear television networks (e.g., CNN)
• Studio and production units
• Streaming platforms

This contrasts with Netflix’s bid, which was reportedly concentrated on streaming and selected studio businesses rather than the full enterprise.

Price Action

Shares across the three companies reflected diverging reactions immediately following the bid shift. Paramount Skydance Corporation (PSKY) closed at $11.18, up 10.04%, and traded higher in pre-market at $12.12 (+8.41%).

Meanwhile, Warner Bros. Discovery (WBD) closed at $28.80 (-0.35%) and slipped further to $28.14 in pre-market (-2.29%).

In contrast, Netflix (NFLX) finished at $84.59 (+2.28%) and extended gains to $90.39 in pre-market (+6.84%).

The price divergence underscores how markets are recalibrating risk: Paramount is being repriced on execution potential, Netflix on capital discipline, and WBD on deal certainty and regulatory friction.

Industry and Market Implications

The proposed acquisition, combining major properties across film, television, and streaming, would significantly consolidate content ownership in Hollywood. Key franchise and platform implications include:

• Merging Paramount+ with HBO Max and other WBD content portfolios
• Bringing major intellectual property such as Star Trek, DC Comics, and Harry Potter under a single corporate umbrella

Following the breakup news, markets reacted with sector rotation: Netflix shares climbed more than 10%, reflecting investor approval of financial discipline, while WBD’s stock experienced a modest decline.

Antitrust Prospects and Next Steps

The deal now enters a period of regulatory scrutiny, with antitrust authorities expected to evaluate competitive impacts across multiple media and distribution sectors. Paramount anticipates a review process that could extend into late 2026, with an expected closing window between September 30 and December 31, 2026.

To mitigate potential legal challenges, the inclusion of a significant $7 billion reverse termination fee underscores the parties’ acknowledgment of regulatory risk and attempts to align incentives for completion.

Structural Implications for Media Consolidation

If consummated, the transaction would:

• Significantly reduce the number of independent major studios in the U.S.
• Create a combined entity with broad content, streaming, and network assets
• Elevate regulatory focus on cross-platform competition and consumer impacts

The outcome hinges on antitrust reviews and potential conditions imposed by regulators. While Paramount’s proposal currently holds structural advantages over Netflix’s bid, the evolving regulatory landscape will determine whether the deal can be completed within the projected timeframe.

The post Paramount Skydance Positioned to Acquire Warner Bros After Netflix Withdraws Bid appeared first on ETHNews.