Paramount Skydance Expected to Offer $32 Per Share for WBD

Khac Phu Nguyen

Tue, February 24, 2026 at 2:55 AM GMT+9 2 min read

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This article first appeared on GuruFocus.

Paramount Skydance (NASDAQ:PSKY) is preparing what could be a decisive move in its pursuit of Warner Bros. Discovery (NASDAQ:WBD), with Variety reporting that industry insiders expect a $32 per share offer for the entire company. That figure would sit above the more than $31 per share level previously communicated by a senior Paramount executive, who indicated the company was willing to improve its proposal if WBD reengaged. Warner Bros. agreed last week to renegotiate for a best and final offer, setting a seven-day deadline that expires at 11:59 p.m. ET on Feb. 23, a timetable that may shape whether the existing transaction faces a materially higher competing bid.

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The structure of the revised pitch appears designed to strengthen its appeal. David Ellison’s latest offer to David Zaslav reportedly includes a ticking fee of at least $650 million per quarter payable to Warner Bros. shareholders after 2026 if regulatory clearance is not obtained, along with a commitment to fund the $2.5 billion termination fee that would be payable to Netflix (NASDAQ:NFLX), among other things. In a separate SEC filing on Friday, Paramount disclosed that the 10-day U.S. antitrust waiting period tied to its all-cash offer has expired, meaning there is no statutory impediment in the U.S. to closing its proposed acquisition of WBD. Taken together, the higher indicated price, added shareholder protections, and regulatory progress could increase pressure on the WBD board as it evaluates its options.

Netflix, meanwhile, is signaling discipline rather than escalation. In a Feb. 20 interview with Variety, co-CEO Ted Sarandos said the company has a rich history of being willing to walk away and let someone else overpay, while noting that Netflix has a signed deal with Warner Bros. Discovery and that, according to the board, no better offer has yet emerged. Under the current agreement, Netflix retains the right to match any competing proposal. With WBD scheduled to hold a special meeting on March 20 to vote on the Netflix transaction, investors may be watching closely to see whether Paramount formalizes a $32 per share bid and whether Netflix elects to respond or potentially step aside.

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