The high-stakes battle for Warner Bros. Discovery assets has taken a “dramatic” turn, with Netflix granting it a strategic seven-day waiver to entertain a rival proposal from Paramount Global.
According to the latest reports, PSKY is now willing to pay $31 per share – if not more – for the HBO-parent.
Meanwhile, the clock is still ticking toward the critical shareholder vote on the Netflix deal scheduled for March 20.
That said, while the seven-day waiver has surely stirred the pot, there’s reason to believe it’s nothing more than a tactical delay.
When the dust settles, NFLX may still emerge the victor in this streaming arms race.
Netflix’s financial superiority makes it a more attractive buyer
Even if Paramount returns with a “sweetened offer” or a more aggressive valuation, Netflix Inc is uniquely positioned to simply outmuscle its rival.
NFLX boasts an industry-leading balance sheet characterised by massive free cash flow and a much lower debt-to-equity ratio compared to the legacy media giants.
While Paramount is still navigating the choppy waters of its own internal restructuring and linear TV decline, Netflix is operating from a position of pure growth.
If a bidding war erupts, NFLX has the liquidity to match or exceed any sweetened offer Paramount puts on the table, effectively regaining the upper hand by offering WBD shareholders the stability of a cash-rich tech titan rather than the volatility of a merging traditional studio.
Paramount deal comes with national security concerns
One of the most significant hurdles for Paramount to win the bidding war is the origin of its capital: the PSKY deal relies significantly on foreign funding.
While some critics argue a Netflix acquisition would create a domestic monopoly – something the Trump administration has noted as well – national security concerns regarding foreign influence over American media assets often carry more weight.
The US government is likely to scrutinise the source of Paramount’s backing far more rigorously than NFLX’s domestic expansion.
In the current geopolitical climate, a “monopoly” concern is a regulatory hurdle – but a “national security” concern is often a deal-breaker, giving Netflix a cleaner path to regulatory approval.
This is partly why Warner Bros. Discovery confirmed this morning that it remains fully committed to its deal with NFLX.
WBD is a ‘must-have’ for Netflix Inc
Beyond finances and politics, Netflix is driven by a fundamental need for WBD’s deep library.
As industry expert Michael Nathanson has previously argued, these assets are not a “nice-to-have” luxury, but a “must-have” for NFLX to maintain its dominant market share.
Without Warner Bros. Discovery’s premium IP – ranging from HBO’s prestige dramas to the DC Universe – Netflix Inc risks losing its grip on the “high-churn” segment of the audience that craves established franchises.
For NFLX, losing this race means allowing a competitor to build a rival “super-service” that could finally challenge its throne.
For the streaming behemoth, the WBD catalogue is the ultimate defensive moat; they simply can’t afford to let it fall into anyone else’s hands.
https://invezz.com/news/2026/02/17/heres-why-netflix-would-still-win-the-race-for-wbd-assets/
