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WBD Reaffirms Netflix Deal as Paramount Mounts Hostile Bid and Antitrust Offensive

Regulatory reviews are gearing up and investor jitters have dragged on Netflix shares ahead of its Jan. 20 earnings report.

Overview

  • Warner Bros. Discovery’s board again backed Netflix’s roughly $82.7 billion cash-and-stock purchase of its studio and streaming assets, which would be paired with a spin-off of the Discovery-branded linear TV networks into a separate company.
  • Paramount Skydance is keeping its $30-per-share all-cash hostile tender for all of WBD on the table after repeated rejections and has threatened litigation, while pressing lawmakers with a filing that labels the Netflix–WBD deal “presumptively unlawful.”
  • WBD disclosed that the U.S. Justice Department will review both the Netflix agreement and Paramount’s competing proposal, with additional scrutiny expected from European and state authorities.
  • Netflix shares have slid sharply during the takeover fight, falling 12.9% in December and sitting roughly a third below their late-June peak as investors weigh cost, financing and regulatory risks.
  • Key near-term markers include Netflix’s Jan. 20 earnings release and Paramount’s tender window currently set through Jan. 21, with a lengthy, multijurisdictional review likely to extend well into 2026.