Overview
- Netflix disclosed to employees in an SEC-filed memo that its proposed deal covers WBD’s studio and streaming units and projects U.S. viewing share rising only from roughly 8% to 9%.
- Paramount Skydance submitted a higher all-cash offer of about $108 billion for WBD, which Netflix called expected while arguing its proposal better protects jobs and long-term value.
- Netflix shares have fallen roughly 10% since the announcement, reflecting investor concerns over potential debt load, integration complexity, and regulatory uncertainty.
- Analyst Robert Fishman of MoffettNathanson urged Netflix to step back from a bidding war, highlighting the financing and execution risks tied to such a large transaction.
- Labor groups and U.S. senators including Elizabeth Warren, Bernie Sanders, and Richard Blumenthal have pressed the Justice Department to scrutinize the deal for antitrust and consumer price impacts.