Regulatory Landscape Shifts for Warner Bros. Discovery Bidding War

The high-stakes contest for media conglomerate Warner Bros. Discovery has entered a new phase following a significant political development. In a move that alters the competitive dynamics, former U.S. President Donald Trump has unexpectedly declared he will not intervene in the sale process. This decision is seen as improving the prospects for leading bidder Netflix, while prompting rival Paramount Global to launch an aggressive counter-strategy.

Market observers noted a strategic reversal from comments made in December 2025, when President Trump had publicly expressed skepticism about regulatory approval for a potential Netflix deal. In a recent interview, he stated he would refrain from involvement, explicitly leaving the review to the Department of Justice (DOJ).

This withdrawal of direct political pressure shifts the focus entirely to antitrust considerations. The DOJ is currently examining the proposed acquisition, which includes assets such as Warner Bros. Studios and HBO. Analysts interpret Trump's stance as a positive signal that increases the likelihood of the Netflix transaction reaching a successful conclusion.

Paramount Intensifies Its Campaign

Facing this changed landscape, Paramount Global is refusing to concede. The company's CEO, David Ellison, published an open letter to the creative industry on Thursday, criticizing the Netflix agreement as "monopolistic." To bolster its own proposal, Paramount has outlined specific guarantees: should its offer succeed, it pledges to produce a minimum of 30 theatrical films annually and maintain an exclusive 45-day cinema window prior to streaming release. Furthermore, HBO would be preserved as an independent unit.

Should investors sell immediately? Or is it worth buying Warner Bros. Discovery (A)?

In a tactical move to maintain pressure, Paramount has extended its takeover offer for shareholders until February 20, 2026. The company contends that its proposal faces fewer regulatory hurdles compared to the Netflix model.

Warner Bros. Discovery Board Holds Firm

The management of Warner Bros. Discovery remains unswayed by these efforts. The board has unanimously rejected Paramount's offer, citing substantial credit risk concerns associated with the competitor. Company leadership continues to favor the all-cash bid from Netflix, valued at $27.75 per share.

Netflix Co-CEO Ted Sarandos has already defended the deal before a Senate committee, arguing that the acquisition would strengthen the U.S. entertainment industry, despite critics warning of excessive market concentration within the streaming sector.

Investor Focus Turns to Key Date

With the extension of Paramount's offer, February 20, 2026 emerges as the next critical date for investors. Warner Bros. Discovery shares recently traded at 22.76 euros, a price still below the Netflix bid. The stock's future trajectory is now seen as primarily dependent on the antitrust authorities' final assessment of market competition.