Netflix Casts Doubt on Paramount Bid as Warner Battle Heats Up, FT Reports

The global streaming wars just entered a new, intense chapter. Netflix, the world’s largest streaming service, has publicly questioned the seriousness of Paramount’s bid for Warner Bros. Discovery, even as its own massive deal to acquire Warner’s studio and streaming assets pushes forward. This escalating battle reflects how traditional media and digital streaming giants are shifting power in entertainment.

Why Warner Bros. Discovery Is Up for Grabs

• Company Value: Warner Bros. Discovery is a top media company with huge brands like HBO, DC, and Warner Bros. Pictures.
• Content Power: Its library helps streaming platforms win subscribers because content is the main driver now.
• Netflix Bid Size: Netflix offered around $82.7 billion to buy Warner’s streaming and studio assets.
• Deal Scope: Netflix’s offer includes HBO Max, Warner Studios, and IP, but excludes CNN and Discovery+, which are being spun off.
• Paramount Bid Size: Paramount Skydance offered about $108.4 billion for the entire Warner Bros. Discovery with cash.

Netflix’s Doubts on Paramount’s Bid

• Sniff Test: The Netflix co-CEO Greg Peters had stated that the Paramount offer did not pass the so-called “sniff test.”
• Shareholder Support: Netflix claims only a small share of Warner shareholders have supported Paramount’s bid.
• Debt Risk: Paramount’s bid needs heavy debt financing, which makes it risky.
• Board Rejection: Warner’s board rejected most of Paramount’s offers and recommended Netflix’s deal.
• Regulatory Hurdles: Paramount’s structure may face financing and regulatory issues.

The Netflix–Warner Bros. Deal: Recent Updates

• All-Cash Offer: Netflix revised its offer to all cash worth $82.7 billion.
• Simplified Deal: All-cash bid reduces risk and speeds up the process.
• No Stock Component: Netflix removed stock from the deal and focused on cash.
• Exclusions: The deal excludes Warner’s cable and news businesses.
• Board Support: Warner’s board unanimously supports Netflix’s offer as less risky.
• Stock Pressure: Netflix stock dropped recently, but the all-cash offer strengthens its position.

The Paramount Challenge

• Deadline Extended: Paramount extended its deadline to Feb 20, 202,6 to gather more shareholder support.
• Higher Cash Value: Paramount offers $30 per share, higher than Netflix’s $27.75 per share.
• Broader Assets: Paramount claims its offer includes assetthat s Netflix is not acquiring.
• Board Concerns: Warner’s board rejected Paramount due to financing risk and uncertainty.

Market Impact

• Netflix Stock Moves: Netflix shares fluctuated during the bidding battle.
• Paramount Stock Moves: Paramount shares reacted to offer updates and deadline extensions.
• WBD Stock Moves: Warner Bros. Discovery shares moved with each competing bid.
• Market Trend: The bidding war shows how acquisition news impacts stock prices fast.

Broader Industry Implications

• Streaming Consolidation: This battle shows media consolidation is accelerating.
• Content is King: Owning big libraries is essential to winning subscribers.
• Competition Pressure: Disney, Amazon, and Apple are also expanding in streaming.
• Regulatory Scrutiny: Governments may review or block deals due to monopoly risk.
• Impact on Viewers: Content licensing and subscription prices may change.

What Could Happen Next

• Scenario 1: Netflix completes the acquisition and becomes a bigger Hollywood force.
• Scenario 2: Paramount gathers enough support and wins the takeover.
• Scenario 3: Regulators block or add conditions, delaying the deal.
• Outcome Impact: Each scenario affects content availability, prices, and market competition.

Conclusion

Netflix and Paramount are locked in a battle over control of Warner Bros. Discovery is one of the most dramatic episodes in recent media history. Netflix’s dismissal of Paramount’s bid, and its push with an all-cash offer backed by Warner’s board, shows how high the stakes have become in the streaming world.

As the battle continues into early 2026, we will be watching closely how it reshapes the future of content, competition, and what viewers around the world watch next.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.