Warner Bros. Discovery Takeover Fight Enters Next Phase as Board Favors Netflix Over Paramount

Regulatory review now stands as the decisive hurdle shaping deal odds, driving near‑term volatility.

Overview

Netflix has offered $82.7 billion for Warner Bros. Discovery’s studios and streaming assets, while Paramount Skydance has a hostile all‑cash proposal valued at $108.4 billion backed by Larry Ellison.
WBD’s board has publicly supported pursuing a negotiated transaction with Netflix and rejected Paramount’s cash bid.
Shares have rallied nearly 300% from an early‑April low, with many investors treating the name as a merger‑arbitrage trade heading into 2026.
Morgan Stanley lifted its price target to $29 on December 18 with an Equal Weight rating, citing resilience of premium content and earnings outlook.
Company fundamentals improved in 2025, with the studio surpassing $4 billion at the box office and streaming guiding to over $1.3 billion in EBITDA as the Netflix offer excludes linear TV assets slated for a Discovery Global spin‑off.