ENTERTAINMENT & LIFESTYLE
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WBD Board Backs Netflix Deal, Rejects Paramount Skydance Bid
Photo credit: Warner Bros.
Warner Bros. Discovery (WBD) is moving closer to a merger with Netflix after its board of directors urged shareholders to reject a rival takeover proposal from Paramount Skydance and instead support the Netflix transaction.
Netflix welcomed the board’s recommendation, saying it followed a thorough review by WBD with independent financial and legal advisers. The board said the Netflix agreement offers greater certainty and a more attractive outcome for shareholders than the unsolicited Paramount Skydance bid launched earlier this month.
The proposed transaction, announced on December 5, would see Netflix acquire Warner Bros. Discovery’s core assets, including its film and television studios as well as HBO and HBO Max. The cash-and-stock deal values WBD at about $27.75 per share, placing the enterprise value of the transaction at approximately $82.7 billion.
As part of the overall plan, WBD intends to separate its Global Linear Networks business, to be renamed Discovery Global, with the spin-off expected to be completed in the second half of 2026.
Netflix said the deal would preserve Warner Bros.’ strong theatrical presence, with films continuing to receive traditional cinema releases, while strengthening the company’s global streaming and content capabilities.
The company also emphasized that its offer provides stronger financing certainty, fewer regulatory hurdles, and more operational flexibility compared with the Paramount Skydance proposal. WBD’s board cited higher uncertainty and potential restrictions tied to the rival bid in recommending shareholders reject it.
Paramount Skydance has maintained that its offer delivers higher headline value, but WBD’s board concluded that Netflix’s proposal offers a clearer path to completion and stronger long-term value.
The transaction remains subject to shareholder approval and regulatory review. Netflix said it remains focused on execution, continued investment in creative content, and expanding global access to films and series as the process moves forward.
Netflix welcomed the board’s recommendation, saying it followed a thorough review by WBD with independent financial and legal advisers. The board said the Netflix agreement offers greater certainty and a more attractive outcome for shareholders than the unsolicited Paramount Skydance bid launched earlier this month.
The proposed transaction, announced on December 5, would see Netflix acquire Warner Bros. Discovery’s core assets, including its film and television studios as well as HBO and HBO Max. The cash-and-stock deal values WBD at about $27.75 per share, placing the enterprise value of the transaction at approximately $82.7 billion.
As part of the overall plan, WBD intends to separate its Global Linear Networks business, to be renamed Discovery Global, with the spin-off expected to be completed in the second half of 2026.
Netflix said the deal would preserve Warner Bros.’ strong theatrical presence, with films continuing to receive traditional cinema releases, while strengthening the company’s global streaming and content capabilities.
The company also emphasized that its offer provides stronger financing certainty, fewer regulatory hurdles, and more operational flexibility compared with the Paramount Skydance proposal. WBD’s board cited higher uncertainty and potential restrictions tied to the rival bid in recommending shareholders reject it.
Paramount Skydance has maintained that its offer delivers higher headline value, but WBD’s board concluded that Netflix’s proposal offers a clearer path to completion and stronger long-term value.
The transaction remains subject to shareholder approval and regulatory review. Netflix said it remains focused on execution, continued investment in creative content, and expanding global access to films and series as the process moves forward.
Dec 18, 2025
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