The battle for Warner Bros. Discovery: How Paramount prevailed

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Paramount Skydance outbid Netflix to acquire Warner Bros. Discovery.

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Paramount Skydance prevailed in its bid for Warner Bros. Discovery after Warner’s board of directors determined that Paramount’s $31-a-share all-cash proposal for the entire company was superior to Netflix’s (NFLX) December 2025 agreement to acquire Warner’s studio and streaming divisions. Netflix subsequently declined to raise its offer, Warner shareholders approved the deal in April 2026, and Paramount completed the $81 billion acquisition the following October.

Netflix had agreed in December 2025 to acquire Warner’s studio and streaming divisions in a cash-and-stock deal valued at about $72 billion, or roughly $82.7 billion including Warner’s debt. Netflix later revised the proposal to an all-cash deal. On February 26, 2026, Netflix said it wouldn’t match Paramount’s higher bid.

Warner Bros. Discovery owns some of the best-known names in entertainment, including the Warner Bros. film studio and HBO. Its catalog includes decades of movies and television programs, from classic films to streaming series.

The company also controls major production facilities. Its main lot in Burbank, California, covers more than 110 acres and includes 31 soundstages and 11 exterior sets. Warner operates another large studio complex outside London that sits on about 200 acres. Those facilities support film and television production for global audiences.

In addition to its studios and streaming services, Warner owns cable networks such as CNN, HGTV, TNT Sports, and Discovery that reach millions of households. The acquisition gave Paramount those networks along with the film studio, HBO, and the company’s production facilities, significantly expanding its footprint in film and television.

In October 2025, Warner said it was reviewing offers from potential buyers while continuing to pursue plans to separate its cable networks from its studio and streaming businesses. The announcement followed several unsolicited bids from Paramount.

In November, Warner confirmed that Netflix, Comcast (CMCSA), and Paramount had submitted formal proposals. The following month, Warner entered exclusive negotiations with Netflix on a cash-and-stock offer valued at about $72 billion, or roughly $82.7 billion including Warner’s debt. The agreement covered Warner’s studio and streaming operations but excluded its cable networks.

In January 2026, Netflix revised the transaction to an all-cash offer at the same price a share.

Paramount then launched a hostile bid for the entire company, offering $30 a share and appealing directly to shareholders. Warner’s board rejected the bid and reaffirmed its support for the Netflix agreement. In February, Paramount raised its offer to $31 a share. Warner’s board determined that the revised proposal constituted a “superior proposal” under its merger agreement with Netflix.

On February 26, 2026, Netflix said it wouldn’t match the revised bid, effectively ending its pursuit of Warner.

In April 2026, Warner shareholders approved Paramount’s $31-a-share acquisition of the company, valuing the deal at about $81 billion, or roughly $111 billion including debt. The U.S. Department of Justice approved the deal a month later.

In July 2026, attorneys general from 12 states sued to block the acquisition, arguing that the merger would reduce competition in film distribution, cable television, and streaming. A federal judge subsequently issued a temporary restraining order pausing the transaction.

In September, Paramount reached an agreement with the states to resolve the lawsuit. Under the proposed settlement, Paramount agreed to establish a board of journalists to protect the editorial independence of CNN and CBS News, distribute 30 movies in theaters each year, and spend an additional $1.5 billion on film production over five years. The agreement, which didn’t require Paramount to sell any of its businesses, was subsequently approved by a federal judge.

On October 6, 2026, Paramount completed its $81 billion acquisition of Warner, making it a wholly owned subsidiary. Paramount Skydance Corporation then changed its name to Skydance Corporation (SKYD). The combination brought Paramount Pictures, Warner Bros., CBS, CNN, HBO, Paramount+, and HBO Max under the same corporate parent.