• Warner Bros. Discovery (WBD) has selected Paramount Skydance (PSKY)'s revised $31-per-share acquisition proposal as superior to Netflix (NFLX)'s bid, positioning the deal for potential closure pending regulatory approval.
  • The agreement comes after Netflix declined to raise its offer on February 26, 2026, with no announcement occurring on February 27, capping a bidding war that boosted WBD's market valuation by $23 billion over five months.
  • The deal reflects ongoing industry consolidation in streaming, with Paramount now poised to control three studios, two streaming platforms, and cable assets if approved.

Warner Bros. Discovery is expected to announce a deal agreement with Paramount Skydance on Friday, according to people familiar with the matter, after selecting Paramount's revised $31-per-share acquisition proposal as superior over Netflix's bid. The move follows Netflix's confirmation on February 26 that it would not increase its offer, with no announcement materializing on February 27 despite earlier expectations.

Efforts to finalize the agreement have accelerated in recent days, with WBD's board filing declaring Paramount's proposal "superior" and positioning the deal for potential closure pending regulatory approval. Without this deal, Warner Bros. Discovery would have faced increased pressure to prove its viability in the competitive streaming landscape against giants like Netflix, Disney (DIS), and Amazon Prime Video (AMZN).

"We believe this proposal offers the best path forward for shareholders and aligns with our strategic goals," said a source close to the negotiations, who spoke on condition of anonymity. Attempts to reach Warner Bros. Discovery and Paramount for additional comment were not immediately successful.

The bidding war, which began in September 2025 with Paramount's initial $19-per-share offer, has seen WBD orchestrate a competition that raised the offer by 63%. CEO David Zaslav's strategy in rejecting earlier bids has enhanced his reputation as a savvy dealmaker, with the company's stock value gaining significantly amid the process. Market trends show intense bidding wars boosting valuations, with WBD gaining the most tangibly from the multi-month competition.

Both bidders have courted U.S. regulators in recent weeks, with Paramount CEO Ellison attending the State of the Union on February 24 and Netflix CEO Sarandos visiting the House on February 26 before withdrawing. Proposals now face domestic and international regulatory scrutiny, with Paramount claiming its bid would receive easier approval than Netflix's would have.

Industry analysts view Warner Bros. Discovery as the clear winner from the war, regardless of the final outcome. Short-term, regulatory review may delay closure, distracting Paramount's rivals. Long-term, approval would cement Zaslav's legacy and elevate Ellison with dominant media assets, while WBD avoids the debt burden that might have accompanied other scenarios.

Shareholders have already benefited from WBD's $23 billion valuation surge, though employees face integration uncertainties. Consumers may eventually see combined streaming and news offerings, though debates center on reduced competition in the media landscape. Netflix had argued its bid would have aided consumers more, according to its February 26 press release.

Correction: An earlier version of this article misstated the timeline of Netflix's decision; it was confirmed on February 26, 2026, not February 27.