Uodate 6: After Paramount sweetened the cope with a $31 per share (over $30) together with a $7 billion termination price if the deal shouldn’t be improved, and a ticking price, which leads to $650 million in money paid out every quarter after September if the deal isn’t finalized, to be the superior deal. This now provides Netflix 4 days to counter Paramount’s present bid. This comes after Paramount Skydance posted a blended earnings name earlier within the day, up 2% income however diluted loss per share is as much as $0.52 a share now, up from $0.31 identical time final 12 months, whereas Warner Bros misplaced $252 million within the final quarter.
Replace: 5. After extra rejection that truthfully didn’t benefit any updates right here, we have now the most recent replace on this saga. On January twelfth, 2026, Paramount Skydance’s David Ellison confirmed he’s now suing Warner Bros. Discovery, in search of monetary disclosure on the deal, which he argues WBD has not made accessible to shareholders, and likewise said he’s planning on nominating Paramount-friendly members to the WBD board who will vote in opposition to the Netflix deal. You may learn the complete letter to WBD shareholders right here.
Replace 4: Warner Bros. Discovery have instructed shareholders to reject Paramount Skydance’s hostile bid for the corporate, placing an finish to the corporate’s $108 billion bid for the famed Hollywood studio. It informed shareholders that the $30/share deal was the inferior deal ultimately, regardless of being a better bid, because it carried far too many “dangers and prices” to WBD. They cited the belongings and liabilities that comprised the Paramount bid, which was comprised of quite a few different backers from all over the world, had been an enormous danger for them as they weren’t disclosed within the deal.
Paramount may, in fact, increase its bid, one thing David Ellison has already steered, however with Affinity pulling its help yesterday, one has to surprise the place Paramount would get the capital to make the bid.
Samuel A. Di Piazza, chair of the board at WBB, issued this assertion:
“Following a cautious analysis of Paramount’s just lately launched tender supply, the Board concluded that the supply’s worth is insufficient, with vital dangers and prices imposed on our shareholders. This supply as soon as once more fails to deal with key considerations that we have now persistently communicated to Paramount all through our in depth engagement and evaluation of their six earlier proposals. We’re assured that our merger with Netflix represents superior, extra sure worth for our shareholders and we look ahead to delivering on the compelling advantages of our mixture.”
CEO of WBD David Zaslav has said to his employees that the regulatory course of has already begun when it comes to Netflix buying Warner Bros.
We’ll replace you as this story continues to progress
Replace 3: Jared Kushner’s Affinity has withdrawn its help for Paramount in its hostile bid for Netflix. This comes days after Tencent pulled its personal help, citing nationwide safety considerations.
Replace 2: Warner Bros. Discovery have mentioned they may evaluation the Paramount Skydance supply and supply a solution inside 10 enterprise days.
Replace 1: Just a few days after the preliminary pleasure over the Netflix/Warner story had settled, Paramount Skydance have launched a hostile bid in an effort to forestall the streamer from buying the over 100-year-old Hollywood studio. The studio, headed by David Ellison, launched an all-cash bid for all of Warner Bros. Discovery. You’ll recall that the Netflix deal was just for Warner Bros. studio, HBO, and HBO Max, whereas this deal contains the likes of CNN, TNT, and Discovery in that supply. The Paramount deal is valued at $30 a share for all the excellent shares, which locations the all-cash supply at $108.4 billion, together with debt. Netflix’s deal is for $27.75 a share and a mixture of money and inventory, making the Paramount deal roughly $18 billion increased. They even launched a press launch to go along with their supply, stating:
“Paramount’s strategically and financially compelling supply to WBD shareholders gives a superior different to the Netflix transaction, which presents inferior and unsure worth and exposes WBD shareholders to a protracted multi-jurisdictional regulatory clearance course of with an unsure final result together with a posh and unstable mixture of fairness and money.”
David Ellison additionally issued this assertion on Monday morning:
“WBD shareholders deserve a possibility to contemplate our superior all-cash supply for his or her shares in your entire firm. Our public supply, which is on the identical phrases we offered to the Warner Bros. Discovery Board of Administrators in personal, gives superior worth, and a extra sure and faster path to completion. We imagine the WBD Board of Administrators is pursuing an inferior proposal which exposes shareholders to a mixture of money and inventory, an unsure future buying and selling worth of the World Networks linear cable enterprise and a difficult regulatory approval course of. We’re taking our supply on to shareholders to offer them the chance to behave in their very own greatest pursuits and maximize the worth of their shares.”
The supply from Paramount is comprised of funds from Ellison’s father, Larry, who’s the co-founder of Oracle, RedBirth Capital Companions, Affinity Companions, which was shaped by Jared Kushner, Donald Trump’s son-in-law, in addition to $24 billion from the wealth funds of Saudi Arabia, Qatar, and Abu Dhabi and $1 billion from Tencent, the mega Chinese language firm. Per Paramount’s deal, anybody from the wealth fund and Affinity forgoes any voting or board rights.
Unique story follows.
After three rounds of bidding, Netflix has come out because the winner to buy Warner Bros. Discovery. The projected deal is actually a landmark one, and one that can virtually actually change the Hollywood trade in a method, form or type. With this deal, Netflix not solely acquires the movie studio Warner Bros and all its IP, together with Harry Potter, The Lord of the Ringsand DCbut in addition HBO, HBO Max, which incorporates backlist titles like The Wire and Sopranos, in addition to present reveals like Activity and Home of the Dragonand Warner Video games, which incorporates Mortal Kombat andHogwarts Legacy.
The streamer put in a deal price $82.7billion, together with debt, with 85% of the supply being in money, which the streamer pulled from numerous loans. For weeks, Netflix has been going head-to-head with Comcast and Paramount Skydance to say the rights to WBD. Now, the streamer enters conversations and the authorized loopholes to accumulate the Hollywood studio. The deal additionally features a $5 billion breakup price, the place, ought to the deal crumble for any motive resulting from Netflix, WBD will receives a commission, however there’s an approximate $3 billion price owed to Netflix ought to WBD again down from the deal.
Netflix has signalled its intent to proceed to permit Warner Bros. to keep up present operations, which means releasing their movies theatrically. Presently, the studio has a deal to launch motion pictures on the large display up till 2029, so time will inform if the streamer elects to resume that deal, or take up all of WB’s future releases onto its streamer.
On the acquisition, the next statements had been issued:
“This acquisition brings collectively two pioneering leisure companies, combining Netflix’s innovation, international attain and best-in-class streaming service with Warner Bros.’ century-long legacy of world-class storytelling. Beloved franchises, reveals and films corresponding to The Massive Bang Principle, The Sopranos, Recreation of ThronesThe Wizard of Oz and the DC Universe will be a part of Netflix’s in depth portfolio together with Wednesday, Cash Heist, Bridgerton, Adolescence and Extractioncreating a rare leisure providing for audiences worldwide.”
“Our mission has all the time been to entertain the world. By combining Warner Bros.’ unbelievable library of reveals and films — from timeless classics like Casablanca and Citizen Kane to fashionable favorites like Harry Potter and Mates — with our culture-defining titles like Stranger Issues, KPop Demon Hunters and Squid Recreationwe’ll have the ability to do this even higher. Collectively, we can provide audiences extra of what they love and assist outline the following century of storytelling.”
With regards to HBO and HBO Max, issues get a bit extra imprecise, as Netflix has said that they’re thrilled to incorporate the celebrated streamer’s catalogue into its personal, but in addition signalled it will be holding HBO Max alive in some capability. In a press release, Netflix mentioned, “By including the deep movie and TV libraries and HBO and HBO Max programming, Netflix members can have much more high-quality titles from which to decide on. This additionally permits Netflix to optimize its plans for shoppers, enhancing viewing choices and increasing entry to content material.”
To me, that sounds a bit like what Disney+ is doing with FX and Hulu, holding them as separate entities, however accessible on the streaming platform. I might anticipate a worth hike that features one thing like Netflix with HBO, primarily based on their wording.
The deal is predicted to take 12-18 months to shut, pending evaluation, antitrust verification, and the wrath of David Ellison, whose Paramount bid misplaced and has already indicated he might be difficult the deal. The Director’s Guild and theatre homeowners additionally might be scheduling conferences with Netflix to voice their concern over the deal, for fears the acquisition would harm cinemas in the long term (and probably bodily media gross sales as effectively, a fear this purchaser has). Netflix appear to be signalling there’s nothing to concern, however in fact, actions communicate louder than phrases, and people teams will should be satisfied, at the same time as Netflix guarantees the deal will create extra alternatives. The deal may also see the separation of WBD’s different belongings into a unique firm, together with branches corresponding to CNN, HGTV, and so forth. This might be spun into Discovery World, a brand new firm not owned by Netflix. Anticipate that firm in Q3 2026 and keep tuned right here for extra updates on this huge story.
With particulars from Selection, Selection, Deadline and The Wrap