Paramount Skydance Bid for Warner Bros. Discovery Likely to Fail

Despite renewed negotiations, Netflix remains the frontrunner to acquire the media conglomerate.

Published on Feb. 24, 2026

Got story updates? Submit your updates here. ›

While Paramount Skydance has submitted a revised offer to acquire Warner Bros. Discovery, industry experts believe the Warner Bros. Discovery board is likely to approve Netflix's original bid. The reopening of negotiations with Paramount Skydance provides legal cover for the board, but the Netflix offer still appears superior due to contractual advantages and potential tax benefits for WBD executives and shareholders.

Why it matters

The acquisition of Warner Bros. Discovery is a high-stakes deal that will reshape the media landscape. The outcome will impact the future strategies and competitive positioning of major entertainment companies.

The details

Paramount Skydance has increased its offer to $31 per share, valuing the entire company at $108.4 billion. In contrast, Netflix's offer values just the studio assets at $82.7 billion. However, Netflix has the contractual ability to match any competing offer, and the WBD board is incentivized to accept Netflix's deal due to potential tax savings. The reopening of negotiations with Paramount Skydance is seen as a legal maneuver to provide cover for the WBD board's expected approval of the Netflix offer.

  • On February 19, 2026, the WBD board announced it was reopening merger talks with Paramount Skydance.
  • The WBD board is expected to approve the Netflix offer at their meeting on March 20, 2026.

The players

Warner Bros. Discovery (WBD)

A media and entertainment conglomerate formed by the merger of Warner Bros. and Discovery Inc. in 2022.

Paramount Skydance (PSKY)

A media company formed by the merger of Paramount Pictures and Skydance Media.

Netflix

A leading global streaming entertainment service.

David Ellison

The owner of Paramount Skydance.

Got photos? Submit your photos here. ›

What’s next

The WBD board is expected to approve the Netflix offer at their meeting on March 20, 2026.

The takeaway

Despite the renewed negotiations, the financial and contractual advantages of the Netflix offer make it the likely winner in the race to acquire Warner Bros. Discovery, barring any unexpected developments.