Paramount Skydance's Higher Bid for Warner Bros. Has Netflix Shareholders Cheering. Here's Why.

2026-02-25 13:49:13 ET

Netflix 's (NASDAQ: NFLX) ongoing attempt to acquire the studio and streaming assets from Warner Bros. Discovery (NASDAQ: WBD) hit a new wrinkle on Wednesday. Suitor Paramount Skydance (NASDAQ: PSKY) increased its hostile takeover bid to $31 per share yesterday. After an initial review of the deal, Warner Bros. said its board of directors "could reasonably be expected" to view the deal as "superior" to the deal on the table from Netflix.

Wall Street and Hollywood are both waiting for Warner Bros. to issue a definitive proclamation. Netflix had agreed to a seven-day period -- requested by Warner Bros. -- for Paramount to submit its "best and final offer." If it ultimately decides that Paramount is offering a better deal, Warner Bros. will give Netflix a four-day window to match the deal, under the terms of its previous agreement.

This leaves Netflix with a conundrum. Should the company increase its offer and risk a protracted bidding war, or simply walk away from the deal? Netflix shareholders are betting it's the latter, sending shares higher today.

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