Warner Bros. Discovery’s (WBD) board is expected to recommend that shareholders vote against Paramount–Skydance’s $108.4 billion all-cash takeover bid and instead support Netflix’s competing offer, according to people familiar with the matter cited by Reuters. The board’s decision could be announced as early as Wednesday, setting up the next phase of a high-stakes contest for one of Hollywood’s most valuable content libraries and franchises.
What the competing bids look like
Netflix’s earlier agreement targets WBD’s non-cable assets—its film and TV studios and streaming business—at $27.75 per share through a cash-and-stock structure, implying roughly $72 billion in equity value and about $82.7 billion in enterprise value (including debt).
Paramount–Skydance countered by going directly to shareholders with a $30-per-share all-cash tender offer for the entire company, including linear cable networks that Netflix’s proposal excludes. Paramount said its bid provides “superior value” and presented it as a cleaner path for shareholders.
Why WBD is leaning Netflix, despite a higher cash number
While Paramount’s headline per-share price is higher, Reuters reports that WBD’s board has concerns around financing reliability and complexity, with sources indicating those worries have been central to deliberations.
Another complicating factor: Affinity Partners, the private equity firm led by Jared Kushner, has withdrawn its financial backing from the Paramount-led bid, according to AP and other reporting. The exit does not automatically end the Paramount offer, but it adds uncertainty to the funding picture and underscores the deal’s political and regulatory sensitivity.
Regulatory scrutiny remains a major overhang
Both potential outcomes carry antitrust and political risk, particularly because a Netflix–WBD combination would be considered a landmark consolidation between a dominant streaming platform and a major studio/TV library. Reuters has reported Netflix leadership told employees its position on the WBD deal is unchanged despite the hostile bid, reinforcing that it is preparing to defend the transaction.
What happens next
If WBD’s board formally recommends rejecting the Paramount–Skydance tender, the spotlight shifts to:
- Shareholder response (tender acceptance levels and voting dynamics)
- Financing and regulatory positioning of Paramount–Skydance post-Affinity exit
- Deal timeline expectations for Netflix’s proposed acquisition of WBD’s studios and streaming assets
For now, the most material near-term catalyst is the board’s expected statement—anticipated as soon as Wednesday—on whether it will advise shareholders to reject Paramount–Skydance and proceed with the Netflix path.
By – Manoj