Paramount Raises Bid for Warner Bros. Discovery, Complicating Netflix Deal
LOS ANGELES – Warner Bros. Discovery is weighing a revised takeover offer from Paramount Skydance, throwing into question its existing agreement to sell a significant portion of its business to Netflix. The development, announced Tuesday, marks the latest twist in a rapidly evolving battle for control of the media giant.
Warner Bros. Discovery confirmed receiving the new bid from Paramount Skydance and stated it will review the proposal with its financial and legal advisors. The company maintains that its current deal with Netflix remains in effect and continues to be recommended by the board. Shareholders have been advised not to take any action at this time.
The saga began in December when Warner Bros. Discovery agreed to sell its studio and streaming businesses to Netflix for approximately $82.7 billion. Paramount Skydance responded with a hostile bid to acquire the entirety of Warner Bros. Discovery, offering $30 per share – a figure exceeding Netflix’s $27.75 per share valuation.
Last week, Warner Bros. Discovery re-engaged in talks with Paramount Skydance following a seven-day waiver granted by Netflix. The current revised offer from Paramount Skydance is now under scrutiny.
Should Warner Bros. Discovery ultimately deem the Paramount Skydance offer superior, Netflix would be entitled to a $2.8 billion breakup fee, which Paramount has agreed to cover. Netflix has four days to counter Paramount’s revised bid if Warner Bros. Discovery signals its preference.
A merger between Paramount and Warner Bros. Discovery would create a media powerhouse, combining HBO Max and Paramount+, and uniting two of the largest movie studios – Warner Bros. and Paramount Skydance Studios. The combined entity would also bring CNN and CBS News under common ownership.
Both the proposed Netflix deal and a potential Paramount-Warner Bros. Discovery merger are expected to face intense regulatory scrutiny in the U.S. and Europe, with antitrust concerns already being raised by critics. The outcome of this bidding war will significantly reshape the media landscape and could have far-reaching implications for consumers and the industry as a whole.
