Paramount and Netflix Drop as Bidding War for WBD Heats Up

Shares of Paramount Skydance (PSKY) and Netflix (NFLX) slid sharply Wednesday as both companies surfaced as top contenders to acquire key assets from Warner Bros. Discovery (WBD).

NFLX fell as much as 6.7%, its lowest since April
PSKY dropped over 5%
WBD also traded slightly lower

Rival Bids Create Industry Tension

According to The New York Post:

If WBD leans toward Netflix’s bid, Paramount has a “Plan B”
Paramount aims to convince WBD shareholders that a Netflix deal would be “doomed to fail” under a Trump-led Department of Justice
WBD is expected to pick a winning bidder as early as this week

Why Netflix Is Favored by WBD’s Board

Media reports indicate:

WBD’s board has warmed up to Netflix’s cash-heavy offer
Netflix argues that bundling its service with HBO Max would lower costs for consumers
However, the White House has antitrust concerns, suggesting the combination could reduce market competition

Why Paramount Still Has an Edge

Despite Netflix’s momentum, many believe the David Ellison–led Paramount bid could face fewer regulatory hurdles:

Strong ties with the Trump administration may smooth approval
The cash bid is backed by major global investors, including:
- Ellison Family
- Apollo Global (APO)
- Saudi Arabia’s Public Investment Fund (PIF)
- Qatar Investment Authority (QIA)
- Abu Dhabi Investment Authority (ADIA)

Ellison Prioritizing the Deal

David Ellison withdrew from the New York Times DealBook Summit, citing the need to focus fully on acquiring WBD — underscoring the high stakes of the bidding war.