In a high-stakes corporate showdown, global media titans Netflix and Paramount Skydance are engaged in a fierce competition to acquire entertainment conglomerate Warner Bros. Discovery (WBD). The final decision rests with WBD shareholders, who are being courted with adjusted bids from both suitors as they prepare for a crucial vote expected by April 2026.
Comparing the Acquisition Bids: Key Financial Metrics
The battle for WBD presents two distinct offers, each with its own financial advantages and strategic implications. Here is how the bids stack up across critical parameters:
1. Annual Savings and Cost Synergies
According to a Reuters report, WBD shareholders stand to save $2-3 billion annually under Netflix's proposal. In contrast, the Paramount Skydance bid promises to execute more than $6 billion in cost synergies through the combined business operations.
2. Per-Share Offer Value
Netflix has put forward an all-cash offer of $27.75 per share for WBD shareholders. Paramount Skydance counters with a slightly higher all-cash tender offer of $30 per share, making it more attractive on a per-share basis.
3. Share Premium Analysis
As per agency reports, Netflix's bid represents approximately a 121.3% premium over Warner Bros. Discovery's closing price on September 10. Paramount Skydance's offer provides an even more substantial 139% premium based on the same reference date.
4. Deal Closing Timelines
The Netflix acquisition is projected to close within 12 to 18 months, while Paramount Skydance's offer maintains a timeline of more than 12 months for completion.
5. Leadership Behind the Deals
Netflix's acquisition effort is spearheaded by co-CEOs Ted Sarandos and Greg Peters. The Paramount Skydance bid is led by CEO David Ellison, with significant backing from his father, Oracle founder Larry Ellison.
6. Funding Sources and Financial Backing
Netflix plans to fund its offer through a debt financing route of up to $59 billion from Wells Fargo, BNP Paribas, and HSBC Bank, supplemented by cash reserves and equity. Paramount Skydance's funding comes from Larry Ellison's personal investment of $40.4 billion, equity capital from RedBird, and $54 billion in debt financing from Bank of America, Citi, and Apollo. Additional financial partners include Saudi Arabia's Public Investment Fund, Abu Dhabi-based L'imad Holding Company PJSC, and Qatar Investment Authority.
7. Enterprise and Equity Valuation
Netflix's offer carries an enterprise value of $82.7 billion and an equity value of $72 billion. Paramount Skydance's bid presents a higher enterprise value of $108.4 billion with an equity value of $74.35 billion.
8. Breakup Fee Provisions
Under Netflix's proposal, the company would pay $5.8 billion as a breakup fee, while Warner Bros. Discovery would be liable for $2.8 billion. Paramount Skydance's offer includes a $5.8 billion breakup fee payable by the acquiring company.
9. Streaming Subscriber Base Comparison
Netflix brings to the table its massive global subscriber base exceeding 300 million. Paramount Skydance currently has approximately 79.1 million streaming subscribers across its platforms.
10. Assets Included in Acquisition
The Netflix deal would encompass Warner Bros.' film and television studios, video game intellectual property and developers, the HBO network and its extensive content library, and the HBO Max streaming service. Paramount Skydance's bid aims to acquire all of Warner Bros. Discovery's assets, including film, television, streaming, gaming, and cable television networks such as HBO and CNN.
Netflix Revises Offer Structure
In a strategic move documented in an SEC filing on January 20, 2026, Netflix revised its original acquisition structure for the $82.7 billion deal. The company shifted from a combination of cash and equity shares to an all-cash transaction, aiming to simplify the process. Despite this structural change, Netflix maintains its valuation of $27.75 per share, unchanged from the previous proposal. This adjustment is designed to provide greater certainty for WBD stockholders regarding value and expedite the path to a shareholder vote.
Paramount's Aggressive $108 Billion Bid
Competing directly against Netflix, Paramount Skydance has launched a $108 billion hostile takeover bid for Warner Bros. Discovery through an all-cash deal. As previously reported, the company has offered $30 per share to WBD investors to acquire all outstanding shares. To make the deal particularly attractive to shareholders, Oracle founder and billionaire Larry Ellison has committed $40.4 billion in personal equity financing to support his son David Ellison's Paramount Skydance offer.
However, Netflix CEO Greg Peters recently told the Financial Times that without Larry Ellison's substantial financial backing through independent financing, Paramount Skydance would allegedly have no chance of securing funding for the acquisition round.
The Decisive Shareholder Vote Approaches
All attention now turns to the upcoming Warner Bros. Discovery shareholders meeting, where investors will vote on the proposed transactions. The meeting, expected to be held by April 2026, will determine whether WBD accepts either acquisition offer, potentially reshaping the global media landscape. With both companies presenting compelling financial packages and strategic visions, the decision represents a watershed moment for the entertainment industry.
