Paramount Skydance has surged ahead in the race to buy Warner Bros. Discovery, putting forward a much larger offer that could reshape the media and streaming landscape. After months of uncertainty following Netflix’s earlier announcement, Warner Bros. Discovery’s board has now labeled Paramount’s latest proposal “superior,” signaling that control of the entertainment giant could soon shift—pending regulatory approval.
Back on December 5, 2025, Netflix publicly stated it had negotiated and financed an agreement to acquire Warner Bros. Discovery, including its film and television studios as well as HBO and HBO Max. That deal was framed as definitive and valued at $82.7 billion, with an equity value of $72 billion. But despite the fanfare, the process didn’t fully close the door on competing bids. Paramount Skydance continued to press forward behind the scenes, and by February 26, the board determined that Paramount’s fresh offer clearly outmatched Netflix’s.
The new Paramount Skydance bid would acquire 100% of Warner Bros. Discovery for roughly $111 billion—far above Netflix’s previously announced figure. Netflix, for its part, chose not to raise its offer, leaving Paramount in the leading position to take over one of the world’s biggest film, TV, and news portfolios.
Paramount’s proposal isn’t just higher—it’s structured to make acceptance easier and reduce financial friction for Warner Bros. Discovery. The offer includes a larger regulatory termination fee, increasing it to $7 billion if the deal collapses due to extended regulatory scrutiny. Paramount also proposes covering the $2.8 billion termination fee needed to end Warner Bros. Discovery’s existing merger agreement with Netflix. On top of that, Paramount is offering to eliminate a potential $1.5 billion financing cost tied to a debt exchange offer—another sweetener designed to make the transition smoother.
Even with the board viewing the bid favorably, the deal isn’t guaranteed. The Warner Bros. Discovery board still needs to formally determine that Paramount’s revised plan qualifies as a “Company Superior Proposal” under the terms of its agreement with Netflix. And ultimately, regulators will decide whether the acquisition is allowed to go forward. Antitrust agencies in the United States and Europe, along with the US Department of Justice, are expected to scrutinize the combination closely before any final approval.
The potential buyer also changes the nature of the public debate. Netflix’s pursuit raised questions about what would happen to Warner Bros. movie franchises and whether theatrical releases could be deprioritized in favor of streaming-first strategies. By contrast, a Paramount Skydance takeover is fueling a different set of concerns—especially around political influence and media control. Paramount Skydance is described as being owned by Larry Ellison and his son David, both known as prominent Republican donors with close ties to US President Donald Trump. In this scenario, Paramount is seen as particularly interested in assets such as CNN and Discovery’s lineup of TV channels—properties that carry major influence beyond entertainment.
Financing is another major piece of the puzzle. To complete a $111 billion acquisition, Paramount reportedly needs to secure substantial borrowing, including support from three Arabic sovereign wealth funds, RedBird Capital, and major banks such as Citi and Apollo, which have already loaned $57.5 billion.
For now, the headline is clear: Paramount Skydance has put itself in pole position to take over Warner Bros. Discovery with a significantly higher bid than Netflix—yet the final outcome will depend on board determinations, financing, and the verdict of regulators on both sides of the Atlantic.
