Paramount Skydance has increased its offer to acquire Warner Bros Discovery, escalating the takeover contest and potentially challenging Netflix’s position as the leading bidder. The revised proposal raises the price by $1 per share, prompting Warner Bros’ board to acknowledge that the new terms could reasonably lead to a superior offer.
Warner Bros, which put itself up for sale last year, confirmed it would continue discussions before deciding whether to walk away from the agreement it reached with Netflix in December. Under that prior deal, Netflix agreed to acquire Warner Bros’ film and streaming operations, including HBO, for $27.75 per share, valuing the transaction at roughly $82 billion, including debt. The remaining assets — such as its traditional television networks and CNN — were set to be spun off as a separate entity.
Paramount’s latest proposal represents a formal increase from its earlier $30-per-share offer to purchase the entire company. The company is now offering $31 per share in cash, along with additional compensation if the deal’s completion is delayed. Paramount has also committed to paying $7 billion if the agreement collapses and covering the $2.8 billion termination fee Warner Bros would owe Netflix should it abandon their merger arrangement.
Netflix has four days to submit a counteroffer but has not yet issued a formal response. In a recent interview conducted before the updated Paramount bid was made public, Netflix co-CEO Ted Sarandos avoided speculating on whether the company would engage in an aggressive bidding war. He described the negotiations as a normal part of the price-discovery process and emphasized that Netflix considers itself a disciplined buyer satisfied with the agreement already in place.
Paramount, backed by technology billionaire Larry Ellison and led by his son David Ellison, has openly pursued Warner Bros for months as part of a broader effort to strengthen its standing in the entertainment industry. Despite earlier rejections, the company has continued refining its proposal, marking the first time it has officially agreed to exceed its original offer.
Warner Bros’ board has not yet made a final determination regarding which path it will pursue. Both competing proposals have drawn scrutiny from lawmakers concerned about competition, consolidation and the broader impact on the entertainment market. During a recent congressional hearing, Sarandos was questioned about potential price increases and the future of cinema exhibition. Meanwhile, the Ellison family’s political connections have also attracted attention in Washington.
Market analysts suggest Warner Bros may be encouraging competitive bidding to maximize shareholder value. Some observers believe the final price could climb higher, possibly reaching $33 per share, as negotiations continue and the contest for control of the media giant unfolds.
