Shares of WBD and PSKY both fell on Wednesday after Warner Bros. Discovery (WBD) backed Netflix’s offer over Paramount Skydance’s bid to buy the company. Meanwhile, NFLX stock is rising on the prospect of winning the race.
According to reports, WBD’s board of directors has rejected Paramount’s $108.4 billion bid to buy the entire company and has decided to support Netflix’s current $72 billion bid for Warner Bros. HBO Max, a film and television studio; The transaction comes after WBD separates its television network (Discovery Global) in Q3 2026.
According to WBD, the board of directors has unanimously determined that Paramount Skydance’s December 8, 2025 tender offer is not good for WBD or its shareholders and does not constitute a “preferred offer” under the December 5, 2025 merger agreement with Netflix. The board of directors has recommended that WBD shareholders reject PSKY’s proposal. It has not been confirmed whether Warner Bros. will choose a bid from Netflix or Paramount, but the former is the frontrunner.
Meanwhile, it’s unclear whether Paramount and David Ellison will raise their bids. Paramount’s all-cash offer of $30 per share exceeds Netflix’s $27.75 per share cash and stock deal and is scheduled to expire on January 8, 2026. Ellison has until then to decide whether to increase PSKY stock fell 5% on Wednesday, and NFLX stock was down 2.39% at market close.
