It’s Netflix’s Move After WBD Says Paramount Has Superior Offer

Are you still watching? Because the Netflix/WBD/Paramount saga has reached its next episode.

On Thursday, Warner Bros. Discovery announced that Paramount Skydance’s updated merger proposal of $31 per WBD share is a “Company Superior Proposal.” Netflix, which previously entered into an agreement with WBD, now has four business days to match.

WBD says its board of directors consulted independent financial and legal advisors for the decision. Among the highlights, Paramount’s offer includes the $31 purchase price in cash, a daily ticking fee of $0.25 per share per quarter (effective after Sept. 30, 2026), and a $7 billion termination fee payable by Paramount if the deal doesn’t go through regulatory approval. Plus, Paramount is on the hook for the $2.8 billion termination fee that WBD would be required to pay to Netflix to terminate the existing Netflix merger agreement.

During an earnings call on Thursday, WBD CEO David Zaslav said that any deal the company makes would focus on maximizing value and minimizing downside risk. He added that the company’s board is continuing to lead a “rigorously highly competitive” sales process.

WBD notified Netflix of its decision, giving the company four days to match, per their agreement. Netflix’s bid was revised in January to an all-cash offer of $72 billion, or $27.75 per WBD share.