Warner Bros. Discovery chairman: Netflix continues to be the superior offer

Watch on YouTube ↗  |  January 07, 2026 at 13:09  |  11:42  |  CNBC
Speakers
Samuel Di Piazza Jr. — Chairman, Warner Bros. Discovery
David Faber — Anchor, Squawk on the Street / Media Analyst

Summary

Warner Bros. Discovery chairman Samuel Di Piazza Jr. tells CNBC's David Faber that the board continues to recommend shareholders reject Paramount Skydance's hostile takeover and support the signed Netflix merger. He argues Netflix's offer provides superior value, a clear path to closing, and shareholder protections, while Paramount's bid is highly leveraged and carries operating and financing risks. Di Piazza also discusses the Discovery Global spin-off, regulatory review paths, and the expected shareholder vote timing.

  • WBD board reaffirms Netflix merger and rejects Paramount Skydance hostile offer.
  • Di Piazza says Netflix is a $400 billion investment-grade company with a $5.8 billion break fee.
  • Paramount's $30 offer is criticized as highly leveraged, below investment grade, and operationally risky.
  • Linear media sector stress and a 15-18 month closing timeline are cited as risks.
  • Discovery Global spin-off is described as larger and with more cash flow than Versant.
  • Regulatory approval paths exist for both deals, but challenges are possible.
  • WBD shareholder vote is expected in late spring or early summer.
Ideas
Samuel Di Piazza Jr. Chairman, Warner Bros. Discovery 0:53
Netflix superior offer; reject Paramount.
WBD's board unanimously recommends shareholders reject Paramount Skydance's hostile takeover and support the signed Netflix merger because Netflix offers compelling value at $27.75 per share, largely cash, with a clear path to closing, shareholder protections, and a $5.8 billion break fee; Netflix is a $400 billion investment-grade company with no financing or operating constraints, while Paramount's $30 offer is highly leveraged, smaller, below investment grade, and carries serious operating and financing risks over a 15- to 18-month closing period.
WBD HIGH
Samuel Di Piazza Jr. Chairman, Warner Bros. Discovery 0:53
Netflix superior offer; reject Paramount.
WBD's board unanimously recommends shareholders reject Paramount Skydance's hostile takeover and support the signed Netflix merger because Netflix offers compelling value at $27.75 per share, largely cash, with a clear path to closing, shareholder protections, and a $5.8 billion break fee; Netflix is a $400 billion investment-grade company with no financing or operating constraints, while Paramount's $30 offer is highly leveraged, smaller, below investment grade, and carries serious operating and financing risks over a 15- to 18-month closing period.
NFLX HIGH
Samuel Di Piazza Jr. Chairman, Warner Bros. Discovery 0:53
Netflix superior offer; reject Paramount.
WBD's board unanimously recommends shareholders reject Paramount Skydance's hostile takeover and support the signed Netflix merger because Netflix offers compelling value at $27.75 per share, largely cash, with a clear path to closing, shareholder protections, and a $5.8 billion break fee; Netflix is a $400 billion investment-grade company with no financing or operating constraints, while Paramount's $30 offer is highly leveraged, smaller, below investment grade, and carries serious operating and financing risks over a 15- to 18-month closing period.
PSKY HIGH
Samuel Di Piazza Jr. Chairman, Warner Bros. Discovery 5:59
Linear media sector under stress.
The entire media sector is under stress, particularly the linear business, and with 15 to 18 months until a potential close, changing financial market conditions and media stress increase the risk for highly levered transactions.
Linear media MED
Samuel Di Piazza Jr. Chairman, Warner Bros. Discovery 7:55
Discovery Global has scale, cash flow.
The Discovery Global spin-off is a different and stronger asset than Versant, with more scale, more cash flow, and long-tenured debt that can be discounted and bought back; while the market will ultimately determine its value, the board views it as sufficient to make the Netflix deal superior relative to Paramount's risk.
Discovery Global MED
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This CNBC video, published January 07, 2026, features Samuel Di Piazza Jr. discussing WBD, NFLX, PSKY, Linear media, Discovery Global. 5 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Samuel Di Piazza Jr.  · Tickers: WBD, NFLX, PSKY, Linear media, Discovery Global