Paramount Skydance (PSKY) has won the bidding war for Warner Bros. Discovery (WBD) after Netflix withdrew from the competition. Despite securing the deal with a $31 per share cash offer and $7 billion termination fee, PSKY's stock remains under pressure, down 15.17% year-to-date. However, the stock's Benzinga Edge value score has climbed to the 88.93rd percentile, suggesting it is increasingly underpriced relative to its fundamental value.

Film critic Sean Fennessey warns that Paramount Skydance's $111 billion acquisition of Warner Bros. Discovery is a disaster in the making, citing Hollywood's poor track record with studio mergers and concerns about David Ellison's control over CNN, HBO, and CBS. Netflix walked away from its bid but may have won the long-term strategic battle. The deal faces regulatory review with a Senate hearing scheduled for March 4.

Netflix withdrew its $82.7 billion bid for Warner Bros. Discovery after the company's board determined that Paramount Skydance's revised offer of $31 per share constituted a superior proposal. The bidding war, which began in December 2025, saw multiple offers from Netflix, Paramount, and Comcast, with Paramount ultimately prevailing after securing a $40.4 billion personal guarantee from Oracle co-founder Larry Ellison.

Netflix CEO Ted Sarandos is scheduled to meet at the White House as the bidding war for Warner Bros. Discovery intensifies. Paramount Skydance raised its offer to $31 per share, potentially qualifying as a superior proposal. The deal faces political pressure, with Trump reportedly demanding Netflix remove board member Susan Rice, though Sarandos maintains it's a business, not political deal. Republican attorneys general have also asked the DoJ to review the acquisition.

Paramount Skydance raised its acquisition offer for Warner Bros Discovery to $31 per share in cash, prompting WBD's board to reconsider the previously preferred Netflix deal. The improved bid includes increased regulatory termination fees and a daily ticking fee, throwing the March 20 Netflix shareholder vote into doubt. PSKY stock rose in premarket trading following the announcement.

Netflix shares rose 1.23% in after-hours trading after Warner Bros. Discovery received a competing offer from Paramount Skydance at $31 per share, higher than Netflix's agreed $27.75 per share deal from December. Warner Bros.' board determined the Paramount proposal could be a superior offer, triggering a four-business-day matching period for Netflix. The original Netflix merger agreement remains in effect and is expected to close in Q3 2026.

Paramount Skydance has increased its bid for Warner Bros Discovery beyond its initial $108.4 billion ($30 per share) offer to $31 per share, intensifying competition with Netflix. Director James Cameron warned that Netflix's acquisition could damage the theatrical film business. Warner Bros is expected to consider Paramount's offer while still recommending the Netflix deal to shareholders, with Netflix able to match any offer under merger agreement terms.

Netflix CEO Ted Sarandos defended the company's acquisition of Warner Bros. Discovery against criticism from President Trump, who called for the firing of Netflix board member Susan Rice. Sarandos characterized the deal as a business matter regulated by the Department of Justice and international regulators, not a political one. He also responded to director James Cameron's opposition letter, emphasizing Netflix's commitment to theatrical release windows and positioning the vertical merger as beneficial for consumers.

The Department of Justice has summoned major theatre chain owners to assess the impact of a potential Warner Bros. Discovery sale, concerned about Netflix's dominance in streaming and its limited theatrical release policy. Netflix CEO Ted Sarandos met with theatre chain executives and pledged to give Warner Bros. movies 45 days of exclusive theatrical releases. Analyst Gary Black predicts Netflix will win the bidding war against Paramount Skydance, with Warner Bros. giving Paramount until February 23 for a final offer.

Analyst Gary Black believes Netflix holds the upper hand in the bidding war for Warner Bros. Discovery assets, arguing stronger strategic synergies position it to prevail over Paramount Skydance. Netflix agreed to acquire Warner Bros. studio assets and HBO Max for $27.75 per share, though the deal faces regulatory scrutiny from the Justice Department over anticompetitive concerns. Despite stock pressure from the bidding war and activist opposition, Black sees potential for Netflix shares to rebound to $100.

Major M&A activity includes Mercedes-Benz planning to sell part of its Daimler Truck stake for €12 billion, Humana in advanced talks to acquire MaxHealth for ~$1 billion, ByteDance selling Mobile Legends creator for $6-7 billion, and Britney Spears selling her music catalog to Primary Wave. Warner Bros. Discovery faces activist opposition to its Netflix deal, while Baker Hughes considers divesting Waygate Technologies.

Activist investor Ancora Holdings has taken a $200 million stake in Warner Bros Discovery and plans to oppose its agreed $82.7 billion sale to Netflix, arguing the board hasn't adequately considered Paramount's rival bid. Paramount has sweetened its hostile offer with a quarterly 'ticking fee' of 25 cents per share and a $2.8 billion termination fee to Netflix, while maintaining its $30 per-share all-cash bid. WBD's board continues to support the Netflix deal, citing stronger value and clearer regulatory path.