Paramount Skydance has proposed $31 per share to acquire Warner Bros. Discovery’s studio and streaming assets and has been granted a seven-day window to present its best and final offer after the board rejected its prior hostile bid. Under the merger agreement, Netflix retains the right to match any superior proposal within the stipulated period.

Analyst Gary Black contends that Netflix’s stronger strategic synergies position it to ultimately win the contest and forecasts that Netflix shares could rebound toward $100 per share even in a scenario where Paramount succeeds in clinching the deal.

Netflix stock has come under pressure, dropping to a 52-week low near $75.23, following activist investor opposition to its $82.7 billion bid and a Justice Department probe into potential anticompetitive practices. These developments add uncertainty to both bidding strategies and shareholder sentiment.