Warner Bros. Discovery Announces Deal Proposal with Paramount

"Now Streaming" is The Fly's weekly recap of the stories surrounding the biggest content streamers.PLAYING THIS WEEKEND:Among this weekend's most notable new streaming content is part two of season four of Netflixperiod drama "Bridgerton." Meanwhile, Hulusubscribers can catch new seasons of "Paradise" and "Scrubs," while HBO Maxusers can watch the first episode of "DTF St. Louis."WARNER BROS. DISCOVERY/PARAMOUNT:On Thursday, Warner Bros. Discovery announced that its Board of Directors, following consultation with its independent financial and legal advisors, has determined that the previously disclosed proposal from Paramount Skydance Corporationconstitutes a "Company Superior Proposal" as defined in WBD's merger agreement with Netflix. As disclosed by WBD on February 24, 2026, PSKY's proposal includes a purchase price of $31.00 per WBD share in cash, plus a daily ticking fee equal to $0.25 per share per quarter beginning after September 30, 2026, as well as a $7 billion regulatory termination fee payable by PSKY in the event the transaction does not close due to regulatory matters, payment by PSKY of the $2.8 billion termination fee that WBD would be required to pay to Netflix to terminate the existing Netflix merger agreement, an obligation of Larry J. Ellison and an associated trust to contribute additional equity funding to the extent needed to support the solvency certificate required by PSKY's lending banks, and a "Company Material Adverse Effect" definition that excludes the performance of WBD's Global Linear Networks segment.Following this announcement, Netflix said that it has declined to raise its offer for Warner Bros., with coc-CEOs Ted Sarandos and Greg Peters saying, "The transaction we negotiated would have created shareholder value with a clear path to regulatory approval. However, we've always been disciplined, and at the price required to match Paramount Skydance's latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid. Warner Bros. is a world-class organization, and we want to thank David Zaslav, Gunnar Wiedenfels, Bruce Campbell, Brad Singer and the WBD Board for running a fair and rigorous process. We believe we would have been strong stewards of Warner Bros.' iconic brands, and that our deal would have strengthened the entertainment industry and preserved and created more production jobs in the U.S. But this transaction was always a 'nice to have' at the right price, not a 'must have' at any price. Netflix's business is healthy, strong and growing organically, powered by our slate and best-in-class streaming service. This year, we'll invest approximately $20 billion in quality films and series and will expand our entertaining offering. Consistent with our capital allocation policy, we'll also resume our share repurchase program. We will continue to do what we've done for more than 20 years as a public company: delight our members, profitably grow our business, and drive long-term shareholder value."Meanwhile, on Friday, CNBC's Dan Mangan and Eamon Javers reported that Netflix CEO Ted Sarandos visited the Whie House for a meeting related to the company's efforts to purchase Warner Bros. Discovery shortly before announcing the company would terminate the deal. Sarandos did not meet with U.S. President Donald Trump, but was meeting with staff members of the White House. After arriving to the White House, Warner Bros. issued a statement that Paramount Skydance's new bid appeared to be a "superior proposal" to Netflix's offer.WARNER BROS. DISCOVERY RESULTS:Prior to the deal announcement, Warner Bros. Discovery reported lower-than-expected Q4 earnings per share, though revenue for the quarter beat consensus estimates. The company added that Q4 global streaming subscribers rose 3.5M sequentially to 131.6M.PARAMOUNT RESULTS:Coincidentally, Paramount Skydance also reported quarterly results this week, noting that Q4 revenue rose year-over-year for its predecessor company. Paramount also reiterated its FY26 reveenue outlook of $30B, which would represent 4% year-over-year growth.F1:In other news, Netflix will broadcast the Canadian Formula One Grand Prix live to U.S. viewers in May as part of a deal that makes season eight of the docu-series "Drive to Survive" available for streaming on Apple TV, Reuters' Alan Baldwin. Apple TV is taking over from Disney's ESPN this season as the exclusive U.S. broadcaster of Formula One, with live coverage of all 24 rounds. Apple's SVP of Services Eddy Cue told reporters on a video call that select races and practice sessions will be made available for free through the season, without giving details.STOCK PLAYS:Other publicly traded companies in the space include FuboTV, Fox, AMC Networks, Roku, Comcast, and Amazon.