Netflix’s proposed merger with Warner Bros. Discovery may be heading into a regulatory storm, according to NY Post columnist Charles Gasparino, who says antitrust concerns could drag the deal out for years, giving Paramount Skydance’s $31 per share cash offer a major advantage.
Gasparino followed WBD’s announcement that Paramount Skydance’s revised bid could lead to a “Company Superior Proposal” by warning that Netflix now faces a critical four-day window and a potentially uphill battle with regulators.
Update: Senator Lindsey Graham posted that Paramount CEO David Ellison is attending President Trump’s State of the Union address.
Gasparino: Netflix Has a Regulatory Problem
According to Gasparino’s sources in Washington, Netflix’s merger with WBD is raising growing antitrust concerns not only in the United States but also in Europe.
He specifically pointed to scrutiny from regulators aligned with former President Donald Trump and suggested Netflix’s lobbying team has not yet made a persuasive case that combining two major streaming players would not reduce competition.
Gasparino argued that Netflix’s position — that competition from social media platforms offsets antitrust concerns — is not convincing policymakers reviewing the deal.
Two Years of Uncertainty vs. $31 Cash
Gasparino suggested that for WBD to continue recommending the Netflix merger, the company may need to convince shareholders to wait as long as two years for regulatory review and approval.
That stands in contrast to Paramount Skydance’s revised $31 per share all-cash offer, which he described as carrying far less regulatory baggage.
The framing is simple: immediate cash at $31 per share versus prolonged scrutiny and uncertainty under the Netflix proposal.
Questions About Netflix’s Financing
Gasparino also raised concerns about Netflix’s deal structure, noting that part of its $27.75 per share bid reportedly depends on proceeds from selling WBD’s cable assets.
He implied that this funding component adds another layer of uncertainty compared to Paramount Skydance’s all-cash structure.
Even if Netflix were to match or exceed the $31 offer, Gasparino argues the regulatory risk alone could still make it the weaker proposal.
Four Days That Could Shift the Deal
Under the terms of the merger agreement, if WBD determines Paramount Skydance’s bid qualifies as a “Company Superior Proposal,” Netflix would have four business days to revise its offer.
Gasparino described the upcoming decision period as pivotal, with Netflix’s legal and lobbying teams now under pressure to address regulatory concerns quickly.
Whether Netflix can overcome that scrutiny — or whether WBD ultimately pivots toward Paramount Skydance’s $31 cash bid — could determine the future ownership of one of Hollywood’s largest media companies.
