Paramount submits higher bid for Warner Bros Discovery, intensifying contest with Netflix

New Delhi: Paramount Skydance has submitted a higher offer for Warner Bros. Discovery, stepping up its efforts to counter a rival deal with Netflix, according to Reuters.

The revised proposal improves on Paramount’s earlier $108.4 billion offer, equivalent to $30 per share for the entire company. Reuters reported that the updated bid is intended to address Warner Bros Discovery’s concerns regarding financing certainty, although the exact revisions were not immediately clear. Warner Bros and Paramount declined to comment, while Netflix did not immediately respond to requests for comment, Reuters said.

Netflix has offered $27.75 per share in cash, valuing the studio and its streaming assets at $82.7 billion. Under the terms of the agreement, Netflix is permitted to match competing bids. Industry publication Variety reported that Warner Bros Discovery is likely to review Paramount’s latest offer while continuing to recommend the Netflix transaction to shareholders.

The contest centres on one of Hollywood’s most significant studio assets, including franchises such as Harry Potter and Game of Thrones, and reflects the broader battle for scale in the streaming market.

Paramount’s bid is backed by technology billionaire Larry Ellison of Oracle. Reuters reported that Warner Bros had asked Paramount to submit its “best and final offer” after rejecting an earlier enhanced proposal. That previous version had included covering Netflix’s $2.8 billion break fee and introducing a quarterly “ticking fee” of 25 cents per share from next year to compensate shareholders for potential delays.

Warner Bros had said Paramount’s February 10 proposal did not constitute a superior offer and set a seven-day deadline ending February 23 for a revised submission.
Warner Bros intends to separate cable assets including CNN and HGTV into a new entity, Discovery Global.

Company estimates indicate the spinoff could be worth between $1.33 and $6.86 per share. Netflix has argued its offer provides shareholders with additional upside linked to that separation, while Paramount has maintained that the cable spinoff holds little value.

Warner Bros Discovery, led by David Zaslav, has also faced pressure from activist investor Ancora Holdings, which built a stake of roughly $200 million in the company. Reuters reported that Ancora criticised Warner Bros for not engaging sufficiently with Paramount and warned it would vote against the Netflix transaction if discussions were not reopened.

Shares in Paramount rose 1.3% to $10.70 in extended trading following the developments.

Warner Bros. Discovery shareholders will vote on Netflix’s proposal on March 20, with the deal subject to regulatory review in the US and Europe. Authorities will examine whether combining Netflix with Warner’s studio and HBO Max assets would curb competition amid bipartisan concerns over consumer and industry impact.