Netflix and Warner Bros. Discovery (WBD) have moved to reinforce their proposed merger after the WBD board unanimously rejected a revised offer from Paramount Skydance, reaffirming its support for the Netflix transaction as the superior proposal for shareholders.
Following what WBD described as a “comprehensive and rigorous” review with independent legal and financial advisers, the board concluded that the Netflix deal offers greater value than the competing bid announced by Paramount Skydance on December 22, 2025. The decision clears the way—at least at board level—for a transaction that would reshape the global entertainment and streaming landscape.
Under the agreement announced on December 5, 2025, Netflix would acquire Warner Bros. Discovery in a cash-and-stock deal valuing WBD at $27.75 per share. The transaction implies an enterprise value of approximately $82.7 billion and an equity value of $72 billion, making it one of the largest media mergers in recent years.
Netflix co-CEOs Ted Sarandos and Greg Peters framed the deal as strategically and culturally complementary, emphasizing scale, content breadth, and global reach. According to Netflix, the combination would integrate Warner Bros.’ film and television studios, HBO, and HBO Max into Netflix’s existing streaming and production ecosystem, while expanding opportunities for creators and consumers across theatrical and at-home distribution.
Importantly, the transaction preserves the planned separation of WBD’s Global Linear Networks business, Discovery Global, which is expected to be completed in the third quarter of 2026. Netflix has also stated that the deal’s financing structure does not trigger review by the Committee on Foreign Investment in the United States (CFIUS), removing one potential regulatory hurdle.
Competition scrutiny, however, remains central to the deal’s timeline. Netflix has already submitted its Hart-Scott-Rodino filing and is engaging with antitrust authorities, including the U.S. Department of Justice and the European Commission. The companies expect the transaction to close within 12 to 18 months, subject to regulatory approvals and a favorable shareholder vote at WBD.
The scale and vertical integration of the proposed merger—combining one of the world’s largest streaming platforms with a major studio and premium content library—are likely to attract close attention from regulators assessing market power, content distribution, and competitive dynamics in streaming and theatrical markets. While Netflix has positioned the merger as pro-competitive and industry-enhancing, the regulatory review process will ultimately test those claims.
WBD shareholders will receive detailed information through a forthcoming proxy statement and prospectus to be filed with the U.S. Securities and Exchange Commission, outlining the transaction, governance implications, and potential risks. Both companies have emphasized that the proposed deal remains subject to a range of uncertainties, including regulatory approvals, litigation risk, and the challenge of integrating two complex global businesses.
For now, the WBD board’s rejection of the Paramount Skydance bid consolidates Netflix’s position as the preferred partner—but the decisive phase of regulatory and shareholder scrutiny is only just beginning.