Netflix Inc (NASDAQ:NFLX) shares were in premarket trading Wednesday as M&A developments surrounding the company’s proposed acquisition of Warner Bros. Discovery Inc (NASDAQ:WBD) continued to unfold.
Paramount Skydance Corp (NASDAQ:PSKY) has submitted a revised bid for Warner Bros. Discovery at $31 per share in cash — higher than its initial $108.4 billion, or $30 per share, offer.
The new proposal also includes a $7 billion regulatory termination fee and a $2.8 billion termination fee that Warner Bros. would owe Netflix if it walks away from their existing agreement.
Board Weighs Competing Offers
Warner Bros. Discovery’s board determined that Paramount’s revised proposal could reasonably be expected to constitute a “company superior proposal” to the Netflix offer.
The company will now engage further with Paramount Skydance to assess whether the new bid clears that bar. If it does, Netflix will have four business days to revise its existing agreement.
Amid the bidding war, Netflix CEO Ted Sarandos addressed political pressure and competing concerns in a BBC Radio 4 interview. “This is a business deal. It’s not a political deal,” Sarandos said, as reported by Variety.
On director James Cameron‘s opposition to the merger, Sarandos noted he personally met with Cameron in December to reaffirm Netflix’s commitment to the 45-day exclusive theatrical window.
Deal Timeline Unchanged For Now
The Netflix-Warner Bros. Discovery merger agreement, struck in December at $27.75 per share, remains in effect and is still expected to close in the third quarter of 2026. Analyst Gary Black has predicted Netflix would “emerge as victor” in the bidding contest.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Netflix, highlighting its strengths and weaknesses compared to the broader market:
- Value: Weak (Score: 16.11) — Trading at a steep premium relative to peers.
- Quality: Strong (Score: 76.77) — Balance sheet remains healthy.
- Momentum: Weak (Score: 8.17) — Stock is underperforming the broader market.
NFLX Price Action: Netflix shares were up 1.20% at $78.98 during premarket trading on Wednesday, according to Benzinga Pro data.
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