Netflix reaffirms merger with Warner Bros Discovery amid rival bid

Netflix Inc. (NASDAQ: NFLX) welcomed Warner Bros. Discovery's board commitment to their merger agreement and rejection of a revised offer from Paramount Skydance Corporation announced December 22, 2025.

The Warner Bros. Discovery board reaffirmed after a comprehensive review that the Netflix transaction remains in the best interests of stockholders. The board continues to recommend the Netflix merger over the Paramount Skydance proposal.

"The WBD Board remains fully supportive of and continues to recommend Netflix's merger agreement, recognizing it as the superior proposal that will deliver the greatest value to its stockholders, as well as consumers, creators and the broader entertainment industry," said Ted Sarandos and Greg Peters, co-CEOs of Netflix.

Under the agreement announced December 5, 2025, Netflix will acquire Warner Bros., including its film and television studios, HBO Max and HBO, in a cash-and-stock transaction valued at $27.75 per WBD share. The total enterprise value is approximately $82.7 billion with an equity value of $72.0 billion.

The transaction preserves the planned separation of WBD's Global Linear Networks business, Discovery Global, expected to be completed in the third quarter of 2026. The financing structure does not require review by the Committee on Foreign Investment in the United States.

Netflix has submitted its Hart-Scott-Rodino filing and is engaging with competition authorities, including the U.S. Department of Justice and European Commission. The transaction is expected to close in 12-18 months from the original merger agreement date.

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