The Big Studios Shuffle: Why WBD Sided With Netflix Over Paramount—And What It Means for PSKY Stock

When the dust settled on Wednesday’s market trading, the winners and losers in Hollywood’s latest blockbuster acquisition battle became crystal clear. Warner Bros. Discovery’s (WBD) board made a decisive move—backing Netflix’s $72 billion proposal to acquire its film and television studios plus HBO Max, rather than Paramount Skydance’s more generous $108.4 billion offer. The market responded swiftly: PSKY stock tumbled 5%, while NFLX shares climbed as investors bet on Netflix’s victory in this high-stakes game.

The Board’s Decision: Netflix Over Paramount

On Wednesday, WBD’s board unanimously rejected Paramount Skydance Media’s acquisition proposal submitted on December 8, 2025, declaring it incompatible with shareholder interests. Instead, the board threw its full support behind Netflix’s bid, which the two companies agreed to on December 5, 2025. According to WBD’s official statement, the Paramount offer simply doesn’t meet the threshold of a “superior proposal” as defined in the Netflix merger agreement.

What makes this decision intriguing? Despite Paramount’s cash offer of $30 per share appearing more lucrative on paper compared to Netflix’s $27.75 per share (a mix of cash and stock), the WBD board judged the Netflix package as the better strategic fit. The Netflix deal includes a structured timeline: the acquisition will finalize after WBD spins off its television network (Discovery Global) in Q3 2026, creating a cleaner transaction path.

The Market’s Instant Reaction

The stock market didn’t waste time pricing in the new reality. Netflix (NFLX) closed the day in positive territory, as traders positioned themselves for a Netflix victory. Meanwhile, Paramount Global (PSKY) fell 5%—a sharp rebuke reflecting market skepticism about Paramount’s chances of sweetening its bid enough to compete. Even WBD shares faced pressure on Wednesday, suggesting some investors may have doubted Netflix’s offer was the superior option.

Paramount’s Next Move: Raise or Fold?

The ball now sits squarely in David Ellison’s court. Paramount’s all-cash offer of $30 per share expires January 8, 2026 (UTC+8), giving Ellison a tight window to decide whether upping the ante makes financial sense. The higher per-share price didn’t overcome the board’s preference for Netflix’s structure—a signal that pure dollars may not win this fight.

For now, the “doge bros” at WBD have laid down their marker: Netflix’s vision for the future of these iconic studios outweighs Paramount’s wallet. Whether Ellison responds with a counter-offer or walks away will determine how this Hollywood saga concludes.