Warner Bros. Discovery Considers Revised Paramount Bid, Citing Netflix Regulatory Concerns

The media company is weighing a higher offer from Paramount Skydance amid worries about Netflix's antitrust issues.

Published on Feb. 24, 2026

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Warner Bros. Discovery announced it will consider a revised $80.6 billion offer from Paramount Skydance to acquire the company, potentially upending its nearly finalized $73 billion deal with Netflix. The WBD board cited growing concerns about the uncertain regulatory environment faced by Netflix, with the White House and antitrust regulators scrutinizing the streaming giant's market power under the Sherman Act.

Why it matters

This development highlights the complex regulatory landscape facing major media mergers and acquisitions. WBD investors are increasingly worried the Netflix deal may not pass muster with US and European regulators, potentially delaying payouts for years. The Paramount offer presents a quicker path to cashing out, even if it's at a slightly lower valuation.

The details

Paramount Skydance, led by David Ellison and his billionaire father Larry Ellison, has revised its original $78 billion offer to $80.6 billion. The WBD board will now 'engage further' with Paramount to determine if this new proposal is superior to Netflix's $73 billion bid. If so, Netflix will have four days to match the offer. Complicating factors for Netflix include the White House's antitrust scrutiny of the streamer's market power and a PR mess involving a Netflix board member's political comments.

  • On February 24, 2026, Warner Bros. Discovery announced it will consider Paramount Skydance's revised $80.6 billion offer.
  • In December 2025, Warner Bros. Discovery had announced a $73 billion deal to be acquired by Netflix.

The players

Warner Bros. Discovery

A major media and entertainment company formed by the merger of AT&T's WarnerMedia division and Discovery Inc.

Paramount Skydance

A media company led by David Ellison, son of Oracle co-founder Larry Ellison, and their investment partners at RedBird Capital.

Netflix

The world's largest streaming entertainment service, which had previously agreed to acquire Warner Bros. Discovery for $73 billion.

David Zaslav

The CEO of Warner Bros. Discovery, known as a veteran dealmaker in the media industry.

Susan Rice

A member of Netflix's board of directors and a top Democrat, whose political comments created a PR issue for the company.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

What’s next

The WBD board will further evaluate the Paramount Skydance proposal to determine if it is superior to Netflix's bid. If so, Netflix will have four days to match the offer.

The takeaway

This bidding war highlights the complex regulatory landscape facing major media mergers, with WBD investors wary of the antitrust risks associated with the Netflix deal. The Paramount offer presents a quicker path to cashing out, even if at a slightly lower valuation, underscoring the importance of regulatory certainty in high-stakes corporate transactions.