The acquisition of film big Warner Bros. has develop into one thing of a popcorn-munching spectacle, as Netflix and Paramount vie to soak up the storied firm. On the time of writing, it looks like Paramount would be the possible suitor, having considerably upped its bid. However there should be twists and turns alongside the way in which.
Most consideration has naturally targeted on the influence of a merger on the TV and movie parts of Warner – or Warner Bros. Discovery (WBD) to offer the corporate’s full title – whereas comparatively little heed has been paid to the potential impact on WBD’s sport studios, which Netflix referred to as “comparatively minor within the grand scheme of issues”.
It is no secret Warner’s studios have been having a powerful time of late, with Rocksteady’s Suicide Squad severely underperforming, WB Video games head David Haddad departing in January 2025, and storied studio Monolith Productions being closed a month later, together with Participant First Video games, and Warner Bros San Diego. The video games division has stated it’s going to now give attention to 4 key properties: Harry Potter, Sport of Thrones, Mortal Kombat, and DC Comics IP.
Netflix has had comparable troubles in its comparatively new gaming division, which has seen redundancies and divestment, and not too long ago underwent a change of focus to prioritize cloud gaming. Paramount, in the meantime – or Paramount Skydance (PSKY) to offer its full title – ostensibly has a extra comparable video games operation to Warner Bros., with Amy Hennig’s Skydance New Media division specializing in IP-led AAA productions equivalent to Marvel 1943: Rise of Hydra and a at present untitled Star Wars sport.
It stays to be seen what is going to occur to Warner’s sport studios – which embody Rocksteady, Avalanche, Netherrealm, and TT Video games – beneath their new proprietor. However under is a timeline of events so far.
June 9, 2025
WBD introduced plans to split the company into two separate entities: Streaming and Studios and World Networks.
Streaming and Studios consists of WB Tv, WB Movement Image Group, Warner Bros Video games, DC Studios, HBO, and HBO Max, whereas World Networks consists of fundamental cable Warner channels equivalent to CNN, TNT Sports activities within the US, and Discovery, in addition to free-to-air channels throughout Europe and digital merchandise together with streaming providers.
August 2025
David Ellison successfully bought Paramount for $8 billion, combining it along with his firm Skydance Media.
Paramount Skydance (PSKY) management and the board reportedly “meet to debate plans to go after WBD,” in line with The Los Angeles Times.
September 11, 2025
PSKY reportedly began preparing its bid for WBD. Sources stated the bid was for your entire firm, together with its cable networks and film studio. Warner executives have been reportedly unaware of PSKY’s intent to pursue an acquisition.
September 12, 2025
The PSKY board discussed its potential acquisition of WBD. The board unanimously authorised the phrases of the proposed supply.
Late September 2025
Ellison reportedly pitched PSKY’s bid to WBD CEO David Zaslav, proposing a $19-per-share cash-and-stock supply, in line with The Wall Avenue Journal.
This was supposedly adopted by a formal letter confirming its bid, which might be made up of 60% money. WBD rejected the supply, saying it was “insufficient.”
Ellison despatched a second supply to the WBD, rising the share value to $22, whereas elevating the money value to 67%. The new deal supplied a $2 billion cost if regulators rejected it. Ellison additionally allegedly supplied Zaslav the function of co-CEO and co-chairman of WBD and PSKY.
October 13, 2025
PSKY issued its third bid, elevating the share value to $23.50 and the money quantity to 80%.
October 21, 2025
WBD formally introduced it was “exploring a potential sale of all or some of its media holdings.“
“After receiving curiosity from a number of events, we’ve initiated a complete assessment of strategic alternate options to establish the very best path ahead to unlock the complete worth of our belongings,” stated Zaslav.
Mid-November 2025
Bloomberg experiences that Netflix co-CEO Ted Sarandos allegedly met with US President Donald Trump to debate “the public sale of WBD,” in line with sources.
Sarandos was stated to have “left with the impression that Netflix would not face fast opposition from the White Home” if it pursued a bid for WBD.
The Netflix boss reportedly determined PSKY “was overestimating its political benefit and would possible underbid,” subsequently creating a gap.
December 1, 2025
PSKY submitted one other bid, elevating its per-share supply to $26.50 in an all-cash transaction.
An SEC filing revealed that PSKY’s supply was backed by a $11.8 billion dedication from the Ellison household, a $24 billion dedication from three Gulf sovereign wealth funds, and a $1 billion dedication from Tencent.
There have been additionally undisclosed commitments from RedBird Capital Companions and Jared Kushner’s Affinity Companions. The latter can be half of the $55 billion acquisition of Digital Arts.
December 4, 2025
One other SEC filing revealed that Tencent backed out as a financing associate. The three Gulf sovereign wealth funds are the Public Funding Fund (additionally half of the EA acquisition), L’Imad Holding Firm PJSC, and Qatar Funding Authority.
December 5, 2025
Netflix introduced its acquisition of WBD for roughly $82.7 billion.
Each corporations entered into a definitive settlement. Netflix would purchase WBD’s movie studio, streaming companies, and video games division. The deal didn’t embody its World Community.
The streaming big supplied $27.75 per share in money and $4.50 in shares of Netflix widespread inventory for every share of WBD widespread inventory.
The transaction was anticipated to shut after the beforehand introduced separation of WBD’s World Community division into a new publicly traded firm in Q3 2026 (September 30, 2026).
“This acquisition will enhance our providing and speed up our enterprise for many years to come back,” stated Netflix co-CEO Greg Peters. “Warner Bros has helped outline leisure for greater than a century and continues to do so with phenomenal artistic executives and manufacturing capabilities. With our world attain and confirmed enterprise mannequin, we are able to introduce a broader viewers to the worlds they create.”
“By coming along with Netflix, we’ll guarantee individuals in all places will proceed to benefit from the world’s most resonant tales for generations to come back,” added Zaslav.
December 8, 2025
PSKY launched a $108.4 billion hostile takeover bid for WBD, upping its per-share supply to $30.
In an SEC filing, PSKY acknowledged it was “prepared to right away signal the transaction, accompanied by absolutely executable agreements with absolutely dedicated debt financing and absolutely dedicated fairness financing from the Ellison household.”
The firm claimed the WBD board and its advisors selected “to make no effort to talk with PSKY or its representatives about something” relating to the Netflix deal. It stated WBD selected to commit “its shareholders to an clearly financially inferior transaction with extraordinary regulatory threat and a longer timeframe to a doable closing.”
“WBD shareholders deserve a chance to contemplate our superior all-cash supply for his or her shares in your entire firm,” stated Ellison. “Our public supply, which is on the identical phrases we supplied to the WBD Board of Administrators in personal, gives superior worth, and a extra sure and faster path to completion.
“We imagine the WBD Board of Administrators is pursuing an inferior proposal which exposes shareholders to a combine of money and inventory, an unsure future buying and selling worth of the World Networks linear cable enterprise and a difficult regulatory approval course of. We’re taking our supply on to shareholders to offer them the chance to behave in their very own greatest pursuits and maximise the worth of their shares.”
Netflix additionally carried out a convention name (by way of Seeking Alpha) concerning the acquisition. The firm’s co-CEO Greg Peters stated it didn’t “attribute any worth” to WBD’s gaming division at first of the acquisition course of.
“Whereas they positively have been doing a little nice work within the sport area, we truly did not attribute any worth to that from the get-go as a result of they’re comparatively minor in comparison with the grand scheme of issues,” he stated.
“Now we’re tremendous excited as a result of some of these properties that they’ve constructed, Hogwarts Legacy is a nice instance of that, have been completed fairly nicely, and we expect that we are able to incorporate that into what we’re providing.
“They have nice studios and nice people working there. So we expect that there is positively a chance there. However simply to be clear, we’ve not constructed that into our deal mannequin.”
Peters additionally spoke about Netflix’s personal video games companies, clarifying that the agency had been investing in its infrastructure and bringing titles to its platform.
“So much of work has been understanding the technique and type of seeing, as we at all times say, you by no means know what you have bought till you get on the market with shoppers and you work it out.
“Now we’re on the level the place we’re actually unlocking the worth of the strategic refinements that we have made, which have been tremendous thrilling. You see a couple of totally different classes that we’re actually going after, and we really feel are in line with what we – the worth we are able to ship to members, which is differential, which is taking immersive narrative video games which are primarily based on IP that we’ve.”
December 17, 2025
WBD suggested shareholders to reject PSKY’s $108.4 billion bid after one other assessment discovered that PSKY’s supply “remained inferior to the Netflix merger.”
The firm stated this decision wouldn’t be a surprise to PSKY, following its “clear, and oft-repeated, suggestions on their six prior proposals.”
“The PSKY supply gives insufficient worth and imposes quite a few, important dangers and prices on WBD,” the board stated. “PSKY has persistently misled WBD shareholders that its proposed transaction has a ‘full backstop’ from the Ellison household. It doesn’t, and by no means has.”
WBD board chair Samuel A. Di Piazza, Jr added: “This supply as soon as once more fails to handle key considerations that we’ve persistently communicated to PSKY all through our intensive engagement and assessment of their six earlier proposals.”
January 7, 2026
WBD rejected PSKY’s amended supply, saying it was “not in the best interest of WBD and its shareholders” to just accept the bid because it nonetheless doesn’t meet the factors of Netflix’s “superior proposal.”
It highlighted PSKY’s “extraordinary quantity of debt financing” and different phrases as “heightening the danger of failure to shut, significantly when in comparison with the knowledge of the Netflix merger.” It additionally noticed that PSKY estimated a “prolonged interval” of 12–18 months to shut the deal following signing.
“PSKY is a firm with a $14 billion market capitalisation trying an acquisition requiring $94.65 billion of debt and fairness financing, almost seven occasions its complete market capitalisation,” stated WBD. “To impact the transaction, it intends to incur a rare quantity of incremental debt – greater than $50 billion – by preparations with a number of financing companions.”
“In distinction, Netflix is a firm with a market capitalisation of roughly $400 billion, an investment-grade steadiness sheet, an A/A3 credit standing and estimated free money stream of greater than $12 billion for 2026.
“The merger settlement with Netflix additionally gives WBD with extra flexibility to function in a regular course till closing. Given these elements, the board decided that the Netflix merger stays superior to PSKY’s amended supply.”
January 12, 2026
PSKY filed a lawsuit in opposition to WBD in Delaware Chancery Court docket to “ask the courtroom to easily direct WBD” to offer details about the phrases of Netflix’s bid “so that WBD shareholders have what they want.”
“WBD has supplied more and more novel causes for avoiding a transaction with PSKY, however what it has by no means stated, as a result of it can’t, is that the Netflix transaction is financially superior to our precise supply,” PSKY CEO David Ellison wrote in a letter.
“Along with not disclosing the worth of the to-be-issued World Networks spin off, WBD has not disclosed the mechanism by which any debt transferred from World Networks to the Streaming & Studios section reduces the money and inventory consideration payable to [shareholders].”
“The greatest consequence for [shareholders] and for us can be if WBD’s board would train the correct it has beneath the Netflix Settlement to have interaction with PSKY.”
“If it does so, we can be open and constructive to safe the very best path ahead. We now have demonstrated our willingness to hear fastidiously to any suggestions we obtain from WBD’s board and to reply by providing affordable options – and that is still our mindset and strategy.”
January 15, 2026
Vice Chancellor Morgan Zum of the Delaware Chancery Court docket rejected PSKY’s bid to speed up its lawsuit, because it didn’t undergo “cognisable irreparable hurt” from WBD’s alleged insufficient disclosures.”
Zum claimed that PSKY had different means to acquire the monetary info from the Netflix transaction. WBD described PSKY’s request as “untimely” and stated it could disclose its financials when it has shareholder approval for the Netflix takeover.
January 20, 2026
Netflix amended its agreement to an all-cash transaction, with its per share worth remaining unchanged at $27.75.
WBD stockholders would additionally obtain the extra worth from Discovery World shares following its separation from WBD. The transaction can be “financed by a mixture of money available, obtainable credit score services, and dedicated financing.”
WBD chair Samuel A. Di Piazza, Jr stated: “Our amended settlement with Netflix is a testomony to the Board’s unrelenting give attention to representing and advancing our stockholders’ pursuits.”
February 10, 2026
PSKY introduced an amended $30-per-share, all-cash tender offer to amass WBD, with “enhancements that surpass the usual wanted for the WBD Board to have interaction with PSKY’s superior proposal.”
These enhancements included an incremental money consideration to WBD shareholders of $0.25 per share, an settlement to pay the $2.8 billion termination payment in opposition to Netflix, and eliminating WBD’s potential $1.5 billion financing value related to its debt alternate.
PSKY stated it could “absolutely reimburse WBD’s shareholders for the $1.5 billion payment, with out discount to the separate $5.8 billion reverse termination payment, within the unlikely occasion that (i) the alternate will not be profitable, and (ii) the PSKY transaction doesn’t shut.”
“The further advantages of our superior $30 per share, all-cash supply clearly underscore our robust and unwavering dedication to delivering the complete worth WBD shareholders deserve for his or her funding,” stated Ellison.
“We’re making significant enhancements – backing this supply with billions of {dollars}, offering shareholders with certainty in worth, a clear regulatory path, and safety in opposition to market volatility.”
February 17, 2026
WBD reopened talks with PSKY and began a seven-day interval (ending February 23) to debate its bid.
Based on Deadline, the Netflix deal “permits WBD to just accept a rival supply outright (paying a termination payment), however to not have interaction in conversations.”
WBD confirmed in a letter to PSKY that Netflix had “agreed to offer a waiver of sure phrases” to make clear its proposal. It additionally revealed that PSKY would conform to pay $31 per share if WBD re-entered talks, and that this wasn’t PSKY’s remaining proposal.
“We welcome the chance to have interaction with WBD and expeditiously decide whether or not PSKY can ship an actionable, binding proposal that gives superior worth, transaction certainty and interim safety for WBD’s companies to Warner Bros. Discovery shareholders,” stated PSKY.
In response, Netflix stated it recognised “the continued distraction for WBD stockholders and the broader leisure trade attributable to PSKY’s antics.”
“Accordingly, we granted WBD a slim seven-day waiver of sure obligations beneath our merger settlement to permit them to have interaction with PSKY to completely and eventually resolve this matter.”
“Netflix is assured that our transaction, a largely vertical merger of complementary belongings, has a clear path to well timed regulatory approval.”
“In contrast, PSKY has repeatedly mischaracterised the regulatory assessment course of by suggesting its proposal will sail by, deceptive WBD stockholders about the true threat of their regulatory challenges world wide. WBD stockholders shouldn’t be misled into pondering that PSKY has a better or sooner path to regulatory approval – it doesn’t.”
February 26, 2026
Netflix withdrew its supply to amass WBD after PSKY elevated its all-cash supply to $31 per share.
PSKY can pay the $2.8 billion termination payment that WBD is required to pay the streaming big to terminate the prevailing merger settlement.
WBD’s board of administrators decided that Paramount’s newest proposal was “superior” to the bid put ahead by Netflix.
“We imagine we might have been robust stewards of Warner Bros’ iconic manufacturers, and that our deal would have strengthened the leisure trade and preserved and created extra manufacturing jobs within the US,” stated Netflix co-CEOs Ted Sarandos and Greg Peters.
“However this transaction was at all times a ‘good to have’ on the proper value, not a ‘should have’ at any value.”
They continued: “Netflix’s enterprise is wholesome, robust and rising organically, powered by our slate and best-in-class streaming service. This yr, we’ll make investments roughly $20 billion in high quality movies and sequence and can increase our leisure providing. In line with our capital allocation coverage, we’ll additionally resume our share repurchase program.”