Netflix, Inc. has welcomed the Warner Bros. Discovery (WBD) Board of Directors’ recommendation that shareholders reject an unsolicited takeover proposal from Paramount Skydance Corporation (PSKY), positioning Netflix’s agreed merger as the stronger and more certain option for investors.
The WBD board’s recommendation follows a review of Paramount Skydance’s offer, which was launched on December 8, 2025, and evaluated with the support of independent financial and legal advisers. After the assessment, the board concluded that the previously announced merger agreement with Netflix delivers superior value and certainty for WBD stockholders.
Details of the Netflix–Warner Bros. agreement
Netflix and WBD announced a fully negotiated and financed definitive merger agreement on December 5. Under the terms of the deal, Netflix will acquire Warner Bros., including its film and television studios, HBO Max, and HBO.
The cash-and-stock transaction values WBD at $27.75 per share, translating into a total enterprise value of approximately $82.7 billion, with an equity value of about $72.0 billion. Beyond the headline valuation, WBD shareholders are also expected to receive incremental value from the previously announced separation of the company’s Global Linear Networks business, Discovery Global, which is scheduled for the third quarter of 2026.
Netflix leadership backs strategic fit
Reacting to the board’s decision, Netflix co-CEO Ted Sarandos said the process had reinforced the strategic and financial merits of the deal.
“The Warner Bros. Discovery Board reinforced that Netflix’s merger agreement is superior and that our acquisition is in the best interest of stockholders,” Sarandos said. “This was a competitive process that delivered the best outcome for consumers, creators, stockholders, and the broader entertainment industry.”
Sarandos added that the combination would strengthen Netflix’s content ecosystem while preserving Warner Bros.’ legacy in theatrical releases and premium television.
“Netflix and Warner Bros. complement each other, and we’re excited to combine our strengths with their theatrical film division, world-class television studio, and the iconic HBO brand, which will continue to focus on prestige television,” he said. “We’re also fully committed to releasing Warner Bros. films in theaters, with a traditional window, so audiences everywhere can enjoy them on the big screen.”
‘Pro-consumer and pro-creator,’ says Greg Peters
Netflix co-CEO Greg Peters described the transaction as one that expands choice and opportunity across the global entertainment landscape.
“By acquiring Warner Bros., we’ll be able to offer audiences and creators around the world even more choice, value, and opportunity,” Peters said. “This transaction is fundamentally pro-consumer, pro-innovation, pro-creator, and pro-growth.”
He added that the combined company would span both home viewing and theatrical experiences while delivering long-term shareholder value.
“Together we will deliver an even broader selection of great series and films that audiences can watch at home and in theaters, while driving long-term value for our stockholders,” Peters said. “We’re excited to begin this new chapter and continue to entertain and delight fans around the world.”
