$82 Billion Empire Under ATTACK—Bidding War

A hostile corporate takeover battle threatens to reshape the streaming landscape as Paramount aggressively challenges Netflix’s grip on Warner Bros. Discovery, with billions at stake and your entertainment choices hanging in the balance.

Story Snapshot

Paramount raised its all-cash bid above $31 per share to disrupt Netflix’s $82.7 billion deal for Warner Bros. Discovery studios and streaming assets
Warner Bros. Discovery reopened negotiations with Paramount on February 17, 2026, granting a seven-day deadline for a best-and-final offer
Paramount sweetened terms with a $2.8 billion Netflix break fee and quarterly incentives, positioning for a full-company acquisition versus Netflix’s partial asset purchase
Major shareholders predict a bidding war could drive premiums higher, with a March 20 shareholder vote looming on the Netflix deal

Paramount Launches Aggressive Counter-Offensive

Paramount Skydance, controlled by David Ellison and backed by billionaire father Larry Ellison, submitted enhanced terms to Warner Bros. Discovery last week after WBD initially favored Netflix’s offer. The company reaffirmed its $30-per-share all-cash proposal while verbally committing to exceed $31 per share, representing a 139 percent premium over September 2025 prices. Paramount’s enhanced package includes a $2.8 billion break fee to compensate Netflix if WBD switches course, plus quarterly “ticking fees” of 25 cents per share starting January 1. This hostile tender offer strategy marks an escalation from September 2025, when Paramount first approached WBD with lower bids rejected as inadequate.

Netflix Holds Advantage Despite Reopened Talks

Warner Bros. Discovery’s board continues to recommend Netflix’s $82.7 billion bid for the company’s studio and streaming divisions, citing regulatory clarity and a “clearest path” forward. Netflix’s offer excludes WBD’s declining cable networks like CNN, HGTV, and Animal Planet, which face disputed valuations amid cord-cutting pressures. The streaming giant reiterated its commitment after granting WBD a seven-day waiver on February 17 to entertain Paramount’s revised proposal. Analysts expect Netflix may match Paramount’s raise to preserve its preferred status, though no public commitment has emerged yet. The board’s March 20 shareholder vote on the Netflix deal, potentially delayed to April, serves as leverage against Paramount’s aggressive timeline.

Media Consolidation Reaches Critical Inflection Point

This bidding war exemplifies the media industry’s desperate scramble for scale in the streaming era, where data, distribution networks, and content libraries determine survival. Warner Bros. Discovery emerged from a 2022 merger of WarnerMedia and Discovery but struggles with debt and declining cable revenues that prompted its late-2025 strategic review. TransUnion SVP Julie Clark called the situation “very dramatic,” noting the industry stands at an inflection point requiring massive scale to compete. A Paramount-WBD combination would unite iconic franchises like Game of Thrones, DC Comics, Star Trek, and Mission: Impossible under one roof, creating a content behemoth. However, such consolidation raises concerns about reduced competition and fewer independent voices in entertainment—a pattern of corporate dominance squeezing out alternatives.

Shareholders Pressure for Higher Bids

Major Warner Bros. Discovery investors are pushing for a bidding war to maximize returns, with Harris Oakmark’s Alex Fitch, the fourth-largest shareholder, urging Paramount to raise its offer further. Burren Capital’s Massimo Stabilini predicted a “very good chance of bidding war” as activist investors favor Paramount’s full-company approach over Netflix’s asset carve-out. Stock prices for WBD, Netflix, and Paramount surged following reports of reopened negotiations, reflecting market optimism for premium payouts. Paramount’s financing from RedBird Capital, Middle East sovereign funds, and banks provides the firepower to escalate, while Netflix’s reluctance to engage in a prolonged auction could hand Paramount an opening. The outcome hinges on whether shareholders accept regulatory uncertainty for higher premiums or settle for Netflix’s clearer but lower path.

The deadline drama underscores how streaming giants are willing to deploy hostile tactics and break fees to secure dominance, reshaping a $500 billion media market while antitrust regulators watch closely. Paramount’s March 2 extended tender deadline and potential director nominations signal a protracted fight regardless of WBD’s February 23 response. For consumers, the consolidation means fewer companies controlling what gets made and distributed—a trade-off between efficient scale and creative diversity that favors Wall Street over Main Street. As Julie Clark noted, scale now defines media’s future, leaving smaller players and independent content creators squeezed out by corporate behemoths chasing subscriber growth at any cost.