Paramount Skydance Ups the Ante in Bidding War for Warner Bros. Discovery Assets

A fresh, unsolicited bid from Paramount Skydance has complicated Netflix's planned acquisition of assets from Warner Bros. Discovery (WBD), introducing a new layer of competition. The move comes as regulatory scrutiny continues and a significant insider sale at Netflix draws market attention.

Paramount Skydance submitted a modified offer to purchase the WBD assets in question. A critical component of this new proposal is Paramount Skydance's willingness to assume the breakup fee. This is the penalty WBD would be obligated to pay Netflix should it walk away from their existing agreement.

Warner Bros. Discovery acknowledged receipt of the updated bid. The company's board of directors stated that its prior recommendation regarding the transaction with Netflix remains unchanged for now. The board will evaluate the new proposal before issuing any further guidance to shareholders.

Regulatory Oversight in Progress

This corporate tug-of-war is unfolding under the watchful eye of U.S. regulators. The Department of Justice is conducting a standard review of Netflix's proposed multi-billion dollar acquisition of the WBD assets. The deal's potential competitive implications were also discussed during a hearing before a Senate subcommittee in early February.

Should investors sell immediately? Or is it worth buying Netflix?

Insider Transaction and Stock Performance

Separately, regulatory filings revealed that Netflix Chief Financial Officer Spencer Neumann sold 9,248 shares on February 6. The transaction was valued at approximately $751,600.

Since the initial announcement of the acquisition plans, Netflix shares have faced headwinds, trading notably below their mid-2025 peak. While the stock price saw gains in the latest session, it moved around the $84 level. The equity continues to trade below its key short-, medium-, and long-term moving averages, a technical signal often interpreted as persistent downward pressure within the broader trend.

Market participants now await the next development: whether, and how swiftly, WBD's board will complete its review and communicate an updated position to its shareholders following Paramount Skydance's revised offer.