The battle for Warner Bros. Discovery just moved into a more serious phase.
Warner Bros. Discovery said it is engaging further with Paramount Skydance after receiving a revised proposal that the board says could reasonably lead to a superior offer than its existing agreement with Netflix—though it has not made that determination yet.
What changed in Paramount’s revised bid
Paramount Skydance, led by David Ellison, reportedly raised its offer to $31 per share, reopening talks after earlier proposals failed to win over Warner’s board. The revised terms were designed to address two core concerns: deal certainty and financing strength.
According to Reuters, Paramount improved the offer by:
- increasing the regulatory-related termination fee to $7 billion (up from $5.8 billion),
- adding a $0.25 per share quarterly “ticking fee” for delays beyond September 30,
- and agreeing to contribute more equity if banks raise financing concerns closer to closing.
That combination matters because in mega-deals, headline price is only part of the story. Boards care just as much about whether the buyer can actually close.
Netflix is still in the game—and has a match right
Warner’s existing deal with Netflix remains in place. Netflix’s current bid is an all-cash $27.75 per share offer for Warner Bros. Discovery’s studio and streaming assets, valuing that transaction at about $82.7 billion.
Under the merger terms, if Warner’s board ultimately decides Paramount’s proposal is superior, Netflix gets four days to revise its offer.
That means this isn’t just a “Paramount vs. Netflix” headline anymore—it’s a structured auction with legal triggers, deadlines, and tactical leverage.
Why this fight is bigger than one company
This is a power struggle over one of Hollywood’s most valuable combinations of assets: major studios, premium TV brands, streaming scale, and globally recognized franchises like Harry Potter and Game of Thrones. Reuters notes the bidding war has raised the stakes in a streaming-led media market already under pressure to consolidate and cut costs.
The two paths also represent very different visions:
- Netflix wants the studio and streaming business, while Warner plans to spin off cable assets into Discovery Global.
- Paramount Skydance is pursuing the whole company and has criticized the value of the proposed cable spinoff.
In other words, shareholders are not just comparing price—they’re comparing strategy.
Pressure is building on Warner’s board
Warner has also been under pressure from activist investor Ancora Holdings, which Reuters reports built a roughly $200 million stake and pushed the company to engage more seriously with Paramount. Ancora has warned it could vote against the Netflix deal if Warner refused to reopen discussions.
That pressure appears to have worked—at least enough to get Paramount back to the table.
What happens next
A key date is the planned March 20 shareholder vote on Netflix’s offer. But before that, the real action may happen in negotiation rooms and board meetings as Warner weighs certainty, value, and regulatory risk.
And regulatory risk is no small issue. Reuters notes both possible combinations would face intense scrutiny from U.S. and European authorities, with competition concerns likely to be central whichever buyer wins.
Bottom line
Warner Bros. Discovery has not picked a new winner—but it has clearly signaled that Paramount’s latest bid is serious enough to keep the door open.
