Overview
- Warner Bros. Discovery’s board urged shareholders to approve a negotiated transaction with Netflix valued at $82.7 billion in enterprise value, or $27.75 per share.
- Directors rejected Paramount Skydance’s hostile $30-per-share cash offer, citing inadequate financial assurances for a proposal pegged near a $108.4 billion enterprise value.
- The contemplated deal would bring HBO, HBO Max, and Warner’s film and TV studios to Netflix, with added value tied to WBD’s planned 2026 separation of Discovery Global.
- Regulatory pushback is a key risk, with industry groups and lawmakers voicing concerns and reports indicating the DOJ could pursue a comprehensive multiyear antitrust investigation if Netflix prevails.
- Netflix shares are roughly 30% below 2025 highs as firms cut targets or downgraded the stock, though Bernstein, Morgan Stanley, Jefferies, and Wolfe maintained positive ratings with reduced price targets.