Faber Report: Paramount files proxy, extending all-cash tender offer for Warner Bros. Discovery

Watch on YouTube ↗  |  January 22, 2026 at 15:19  |  4:38  |  CNBC
Speakers
David Faber — Anchor, Squawk on the Street / Media Analyst

Summary

CNBC's David Faber reports that Paramount has extended its $30-per-share all-cash tender offer for Warner Bros. Discovery and filed proxy materials. The key issue is whether Paramount will raise its bid to compete with Netflix's $27.75 cash-plus-stub offer. Faber believes Paramount likely needs to raise its bid to win and that Netflix would likely respond, leaving the April shareholder vote and the Discovery Global stub value as key uncertainties.

  • Paramount extended its all-cash tender offer for Warner Bros. Discovery.
  • Paramount filed proxy materials disputing WBD's valuation of the Discovery Global spin-off.
  • Netflix's competing bid is $27.75 in cash plus a stub.
  • Faber says Paramount must raise its bid if it wants to win.
  • It is unclear if Paramount can defeat Netflix at the April shareholder vote.
  • Netflix is expected to respond if Paramount raises its bid.
  • Larry Ellison's willingness to commit more equity is a key question.
  • The Discovery Global stub value remains a major swing factor.
Ideas
David Faber Anchor, Squawk on the Street / Media Analyst 0:35
WBD is a contested takeover target.
Paramount extended its $30 all-cash tender offer for Warner Bros. Discovery and filed proxy materials, while Netflix's competing bid is $27.75 in cash plus a Discovery Global stub. Faber says the key issue is Paramount must raise its bid if it wants to win; it is unclear whether Paramount can defeat Netflix's bid at the April shareholder vote, and Netflix is unlikely to let WBD go without a response. The value of the Discovery Global spin-off remains a major swing factor in what WBD shareholders receive.
WBD HIGH
David Faber Anchor, Squawk on the Street / Media Analyst 2:28
Paramount must raise bid to win.
Paramount is trying to buy WBD, but Faber's reporting indicates it will have to raise its $30 all-cash bid to win. It is unclear whether Larry Ellison will be willing to commit more money; every $1 per share increase costs about $2.6 billion, and he has already guaranteed $40.4 billion in equity. Faber thinks Paramount likely does not want to go to the April shareholder vote as currently constructed, despite arguments that its cash offer is superior.
PSKY HIGH
David Faber Anchor, Squawk on the Street / Media Analyst 3:20
Netflix likely will counter higher bid.
Netflix's $27.75 all-cash plus Discovery Global stub bid for WBD is strategically important to Netflix, as Ted Sarandos made clear on the conference call. Faber expects Netflix will not simply let WBD go and would likely respond if Paramount raises its bid; Netflix may have to lever up more to do so.
NFLX MED
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This CNBC video, published January 22, 2026, features David Faber discussing WBD, PSKY, NFLX. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: David Faber  · Tickers: WBD, PSKY, NFLX