Shares of Warner Bros. Discovery (WBD) and Paramount Skydance (PSKY) are down in regular trading after reports that WBD is planning to choose Netflix (NFLX) once again over Paramount in the competitive bidding process. Meanwhile, NFLX stock is rising on prospects of winning the race.
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WBD’s board has rejected Paramount’s $108.4 billion offer to buy the entire company and has decided to back Netflix’s current $72 billion bid for Warner Bros.’ movie and TV studios, as well as HBO Max. The deal will happen after WBD spins off its TV networks (Discovery Global) in Q3 2026.
It remains to be seen if Paramount Skydance CEO David Ellison will raise the company’s offer once more. After Warner Bros. initially selected Netflix, Ellison launched a hostile bid to shareholders, claiming superiority over Netflix’s deal.
Here’s What Happened
WBD said its board unanimously decided that Paramount Skydance’s December 8, 2025 tender offer is not good for WBD or its shareholders and does not qualify as a “Superior Proposal” under its December 5, 2025 merger agreement with Netflix. The board recommends that WBD shareholders reject PSKY’s offer.
WBD’s board warns that Paramount’s latest $40.65 billion equity plan lacks any firm commitment from the Ellison family. Instead, it relies on an unclear, revocable trust for key funding.
Will Paramount Up Its Offer?
Paramount’s mammoth hostile bid has high-profile backing from Ellison’s father, Oracle (ORCL) CEO Larry Ellison, Gulf sovereign wealth funds, and Trump’s son-in-law, Jared Kushner’s Affinity Partners. It is worth noting that as of Tuesday, December 16, Kushner withdrew support from Paramount’s offer, stating that “the dynamics of the investment have changed significantly since we initially became involved in October.”
Paramount’s all-cash offer of $30 per share tops Netflix’s $27.75 per share cash-and-stock deal, and is set to expire on January 8, 2026. Ellison has until then to decide if he wants to increase it. Paramount claims its bid offers better value and is more likely to pass regulations. In an open letter, Ellison urged WBD shareholders to tender shares, calling PSKY’s proposal superior in value and regulatory feasibility.
Both deals could face antitrust scrutiny as it could imply monopolistic moves in streaming. President Trump has vowed personal involvement in any review, and insisted that either bid must include WBD’s CNN network.
PSKY or NFLX: Which Is the Better Media Stock?
We used the TipRanks Stock Comparison Tool to determine which media company is currently preferred by analysts.
Analysts remain cautious on both stocks amid Warner Bros. Discovery buyout chaos. However, NFLX stock carries a “Moderate Buy” consensus versus PSKY’s “Moderate Sell,” implying analysts favor Netflix, with greater upside potential over the next 12 months.
