NEW YORK, Feb 27, 2026, 05:17 ET — Premarket
- PSKY tacked on another 9.5% before the bell, building on Thursday’s 10% surge.
- Netflix has opted out of matching Paramount’s $31-per-share offer for Warner Bros Discovery, clearing the way for Paramount’s move.
- Attention turns to how the deal is structured, antitrust concerns, and what WBD does next on the procedural front.
Paramount Skydance Corporation jumped roughly 9.5% to $12.24 ahead of the bell Friday, building on Thursday’s surge. Shares finished the previous session at $11.18, a 10.0% gain.
PSKY is front and center again, as investors weigh the fallout from a potential blockbuster Hollywood deal—one that threatens to upend both streaming and traditional TV. That brings back a nagging question to the tape: just how much leverage can the old media guard absorb before the numbers stop working.
Netflix late Thursday backed away from upping its bid for Warner Bros. Discovery, saying that matching Paramount Skydance’s price would make the deal “no longer financially attractive.” The streamer described buying Warner as “nice to have,” but insisted it’s not a “must have” at any cost. PR Newswire
Paramount reported that WBD’s board determined the $31-per-share cash bid meets the criteria for a “Company Superior Proposal” set out in WBD’s merger deal with Netflix. CEO David Ellison described the bid as offering “value, certainty and speed to closing.” Paramount pointed to a $7 billion regulatory termination fee in the terms, plus a “ticking fee” set to kick in if the deal isn’t done by Sept. 30, 2026 — a feature that adds value if talks stretch out. PR Newswire
The rally’s far from settled—regulators still loom large. California Attorney General Rob Bonta told Reuters the deal is “not a done deal,” stressing that the state’s investigation is ongoing and its review will be “vigorous.” TD Cowen analysts, also quoted in the same report, pointed to potential hurdles from both state regulators and possibly European authorities, even if federal approval appears more likely in the current environment. Reuters
Beyond the latest deal talk, Paramount is still grappling with streaming gains fighting against a slow drip in its old-school TV business. The company gave a first-quarter revenue range of $7.15 billion to $7.35 billion on Wednesday—missing what analysts were hoping for—and pointed straight to ongoing weakness in traditional TV. PP Foresight analyst Paolo Pescatore wasn’t focused on the numbers, saying the real story this quarter is whether streaming can pick up the slack left by fading linear TV.
The backdrop here is important: Warner would be merging with a company already cutting costs and hustling for subscribers. Now, investors face a choice—does adding heft actually solve things, or just make the headache larger?
Plain-vanilla trading risk is part of the equation here. When liquidity dries up after hours, price swings can reverse in a flash. And once lawyers or regulators get involved, merger timelines often stretch out as they dig into the details.
WBD had put a March 20, 2026 special meeting on the books for a shareholder vote on its Netflix merger, after Netflix gave the company a narrow waiver to open talks with Paramount Skydance for a set window. With the Netflix deal falling apart, that timeline could shift—yet for now, it’s still the only firm date investors can circle.
Looking ahead to the next session and into next week, traders are eyeing two key developments: Will WBD pull the plug on its Netflix agreement and lock in a definitive deal with Paramount? And will regulators tip their hand early, possibly turning this premarket spike into a fade?
