Netflix stock gained 1.23% in after-hours trading following news that Paramount Skydance has submitted a competing acquisition proposal for Warner Bros. Discovery valued at $31 per share, exceeding Netflix's December agreement to acquire the media company at $27.75 per share.
Warner Bros. Discovery's board of directors determined that the Paramount Skydance offer warrants further consideration as a potentially superior proposal. Under the terms of the original Netflix merger agreement, the board has initiated a four-business-day matching period, during which Netflix has the opportunity to revise or match the competing bid. The acquisition agreement remains active and is currently expected to close during the third quarter of 2026.
The competing offer represents a significant development in the media consolidation landscape, creating uncertainty around one of the largest proposed entertainment sector mergers. Netflix's existing agreement values the transaction at approximately $55 billion before the revised proposal, while Paramount Skydance's offer would value the combined entity higher based on the increased per-share price.