Netflix Shares Rally 5.7% After $27.75 Bid for Warner Bros. Discovery Assets
Netflix has offered $27.75 per share for Warner Bros. Discovery’s film, TV and HBO streaming units, while Paramount Skydance increased its bid to $31 per share plus a $7 billion break fee. Netflix shares surged 5.7% after David Ellison’s heated Skydance criticism intensified the bidding war.
1. Netflix’s $27.75 Per Share Bid
Netflix has offered $27.75 per share for Warner Bros. Discovery’s film and television studios and HBO streaming division, emphasizing its strategic focus on core content assets. The proposal excludes the company’s cable networks and broader media operations, valuing the targeted units at a premium over recent trading levels.
2. Paramount Skydance Raises Rival Offer
Paramount Skydance countered with a $31 per share cash bid for the entire Warner Bros. Discovery company, sweetened by a $7 billion regulatory termination fee and covering the $2.8 billion fee Warner Bros. Discovery would owe Netflix if it abandons its existing deal. The board has indicated that Paramount’s updated proposal may qualify as a superior bid, triggering a four-business-day window for Netflix to respond.
3. Stock Reaction and Market Implications
Netflix stock vaulted 5.7% as investors reacted to the escalating M&A battle and David Ellison’s public criticisms of Warner Bros. Discovery’s leadership. Market participants are now watching whether Netflix will increase its offer to outbid Paramount or refocus on its own original content strategy.