Warner Bros. Discovery announced Tuesday that Paramount Skydance has increased its purchase offer to $31 per share in cash, escalating a high-stakes bidding war that could surpass Netflix’s prior agreement. The revised proposal adds billions in protections and fees, as WBD’s board weighs whether to pivot away from its existing merger deal.
Warner Bros. Discovery confirmed it received a revised proposal from Paramount Skydance following a seven-day waiver period granted by Netflix. The waiver allowed Paramount to clarify its offer while Netflix retained matching rights.
Netflix and Paramount have both been pursuing WBD since October. After a competitive bidding process, WBD accepted Netflix’s offer on Dec. 5. Paramount later launched a hostile bid, but the board initially stood by the Netflix agreement. Momentum shifted when Oracle founder Larry Ellison committed $40 billion in equity backing for Paramount’s effort.
Netflix revised its offer to an all-cash structure on Jan. 20. Paramount followed on Feb. 10 with its own all-cash proposal and additional financial incentives. The latest $31 per share bid includes a $7 billion regulatory termination fee payable by Paramount if the transaction fails due to regulatory barriers. It also covers the $2.8 billion breakup fee WBD would owe Netflix and introduces a 25-cent daily ticking fee beginning Sept. 30. The prior proposal would not have triggered that fee until 2027.
WBD stated that the Netflix merger agreement remains in effect and that the board continues to recommend the Netflix transaction while reviewing the new offer. The company said it will consult financial and legal advisors to determine whether Paramount’s proposal qualifies as a “Company Superior Proposal” under the existing merger agreement.
If the board determines the Paramount bid is superior, Netflix would have four days to match or exceed the offer. Netflix’s December proposal valued WBD at approximately $82.7 billion, based on a $27.75 per share offer.
Strategically, Netflix is seeking to acquire WBD’s studio and streaming assets, while Paramount’s proposal targets the entire Warner Bros. enterprise. Both potential deals would require approval from U.S. and European regulators, where antitrust concerns are expected given the scale of the combined entities.
The outcome could reshape the global entertainment landscape, consolidating some of the industry’s most powerful brands under a single corporate umbrella. Investors now await the board’s determination as the bidding contest enters a decisive phase.
