Replace 8: Warner Bros. Discovery has signed a take care of Paramount valued at round $110 billion. It now has to face regulation and anti-trust investigations, mainly within the EU in addition to within the State of California, the place State Legal professional Common Rob Bonta might be investigating the deal. The deal was signed with an agreed-upon share worth of $31/share, far outpacing Netflix’s bid of $27.75 per share. As of the time of this writing, ParamountSkydance has a market cap of round $12 billion, and assumes WBD’s $33 billion in debt, alongside paying Netflix $2.8 billion within the breakup price. Let’s not overlook the ticking price that they’ll pay out every quarter as effectively, of $650 million per quarter. That is on high of posting a lack of $573 million the day earlier than throughout their earnings name, and Paramount’s personal debt, which is round $ 15 billion. Plus, Paramount must pay again the cash invested in them from the sovereign wealth funds of Saudi Arabia and Qatar.
However regardless of that, shares jumped on the information, up round 20% on February twenty seventh. If the deal is finalized, ParamountSkydance will grow to be the proprietor of the movie and tv rights (and generally gaming) for such properties because the DC Universe, The Lord of the Rings, The Matrix, Recreation of Thrones, Harry Potter, and extra, plus every thing on HBO, and, maybe most significantly to them, CNN. Paramount already owns CBS, so possession of one other main information community will little question be put beneath the microscope.
Replace 7: After the current bid was deemed superior, Netflix has now dropped out of the race to purchase WBD, paving the best way for Paramount’s acquisition.
Replace 6: After Paramount sweetened the take care of a $31 per share (over $30) together with a $7 billion termination price if the deal will not be improved, and a ticking price, which ends up in $650 million in money paid out every quarter after September if the deal isn’t finalized, to be the superior deal. This now offers Netflix 4 days to counter Paramount’s present bid. This comes after Paramount Skydance posted a combined 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 yr, whereas Warner Bros misplaced $252 million within the final quarter.
Replace: 5. After extra rejection that truthfully didn’t advantage 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, searching for monetary disclosure on the deal, which he argues WBD has not made out there to shareholders, and in addition acknowledged he’s planning on nominating Paramount-friendly members to the WBD board who will vote towards the Netflix deal. You may learn the total 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 advised shareholders that the $30/share deal was the inferior deal in the long run, regardless of being the next 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 around the globe, have been an enormous danger for them as they weren’t disclosed within the deal.
Paramount may, after all, increase its bid, one thing David Ellison has already prompt, however with Affinity pulling its help yesterday, one has to marvel 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 lately launched tender provide, the Board concluded that the provide’s worth is insufficient, with important dangers and prices imposed on our shareholders. This provide as soon as once more fails to handle key issues that we have now constantly communicated to Paramount all through our in depth engagement and assessment of their six earlier proposals. We’re assured that our merger with Netflix represents superior, extra sure worth for our shareholders and we sit up for delivering on the compelling advantages of our mixture.”
CEO of WBD David Zaslav has acknowledged 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 issues.
Replace 2: Warner Bros. Discovery have stated they’ll assessment the Paramount Skydance provide and supply a solution inside 10 enterprise days.
Replace 1: A number of 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 consists of the likes of CNN, TNT, and Discovery in that supply. The Paramount deal is valued at $30 a share for the entire excellent shares, which locations the all-cash provide 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 greater. They even launched a press launch to go together with their provide, stating:
“Paramount’s strategically and financially compelling provide to WBD shareholders gives a superior various to the Netflix transaction, which provides inferior and unsure worth and exposes WBD shareholders to a protracted multi-jurisdictional regulatory clearance course of with an unsure consequence together with a posh and risky mixture of fairness and money.”
David Ellison additionally issued this assertion on Monday morning:
“WBD shareholders deserve a possibility to think about our superior all-cash provide for his or her shares in your complete firm. Our public provide, 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 consider 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 International Networks linear cable enterprise and a difficult regulatory approval course of. We’re taking our provide on to shareholders to present them the chance to behave in their very own finest pursuits and maximize the worth of their shares.”
The provide 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 fashioned 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 nearly actually change the Hollywood trade in a technique, form or kind. 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 additionally HBO, HBO Max, which incorporates backlist titles like The Wire and Sopranos, in addition to present exhibits like Process and Home of the Dragonand Warner Video games, which incorporates Mortal Kombat andHogwarts Legacy.
The streamer put in a deal value $82.7billion, together with debt, with 85% of the provide 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 cause attributable to 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, that means releasing their movies theatrically. At present, the studio has a deal to launch motion pictures on the large display screen 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 have been issued:
“This acquisition brings collectively two pioneering leisure companies, combining Netflix’s innovation, world attain and best-in-class streaming service with Warner Bros.’ century-long legacy of world-class storytelling. Beloved franchises, exhibits and flicks comparable to The Massive Bang Idea, 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 exhibits and flicks — from timeless classics like Casablanca and Citizen Kane to fashionable favorites like Harry Potter and Pals — 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 subsequent century of storytelling.”
Relating to HBO and HBO Max, issues get a bit extra imprecise, as Netflix has acknowledged that they’re thrilled to incorporate the celebrated streamer’s catalogue into its personal, but additionally signalled it could be protecting HBO Max alive in some capability. In a press release, Netflix stated, “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 customers, enhancing viewing choices and increasing entry to content material.”
To me, that sounds a bit like what Disney+ is doing with FX and Hulu, protecting them as separate entities, however out there on the streaming platform. I’d anticipate a worth hike that features one thing like Netflix with HBO, primarily based on their wording.
The deal is anticipated to take 12-18 months to shut, pending assessment, 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 damage 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 after all, actions converse louder than phrases, and people teams will have to be satisfied, whilst Netflix guarantees the deal will create extra alternatives. The deal will even see the separation of WBD’s different belongings into a distinct firm, together with branches comparable to CNN, HGTV, and so forth. This might be spun into Discovery International, a brand new firm not owned by Netflix. Anticipate that firm in Q3 2026 and keep tuned right here for extra updates on this large story.
With particulars from Selection, Selection, Deadline and The Wrap