Warner Bros. Discovery $WBD ( ▼ 2.39% ) is getting ready to make its preference clear. According to the Wall Street Journal, the company plans to tell shareholders to reject Paramount’s hostile takeover bid and stick with its existing agreement with Netflix $NFLX ( ▲ 0.23% ) .
That guidance could land as soon as Wednesday, setting the stage for a higher-stakes bidding fight in early 2026.
Why Warner Is Leaning Netflix
Paramount $PSKY ( ▼ 5.42% ) has offered about $30 per share in cash for Warner Bros. Discovery, valuing the company at roughly $83 billion. Netflix’s proposal values the studios and HBO Max business at about $27.75 per share in a cash-and-stock deal, but comes with more regulatory uncertainty given Netflix’s dominance in streaming.
Even so, Warner’s board reportedly prefers the Netflix path, raising questions about Paramount’s financing and long-term certainty. Warner shares have been hovering close to the $30 level, suggesting investors still think Paramount could sweeten its offer.
After the report, $WBD shares slipped slightly ahead of the close.
A Deal Drama With Political Overtones
The situation is complicated by antitrust risk and politics. Analysts have said a renewed bidding war feels likely, especially if Warner formally urges shareholders to walk away from Paramount’s offer. President Trump added fuel to the narrative Tuesday, distancing himself from Paramount’s owners and hinting at tension around the deal dynamics.
Meanwhile, Paramount’s bid deadline is January 8, giving $PSKY time to raise its offer or apply more pressure directly to shareholders.
What Happens Next
If Warner formally rejects Paramount’s bid, the ball moves squarely back into Paramount’s court. Either it ups the price, walks away, or drags the fight closer to the deadline. Netflix, for its part, is already facing investor skepticism, with $NFLX shares under pressure since the deal surfaced.
For now, Warner is choosing its dance partner. Whether that choice sticks depends on how badly Paramount wants a second chance.