Paramount ups bid for Warner Bros Discovery as Netflix bid looms
Paramount ups bid for Warner Bros Discovery as Netflix bid looms
Paramount Skydance raises its offer to take WB Discovery, intensifying the Netflix-led bidding war in Hollywood.
Paramount Skydance has escalated its bid for Warner Bros Discovery in a high-stakes pursuit that could reshape how studios and streaming platforms compete for control of major franchises. The latest move comes as Warner Bros Discovery weighs options amid a fierce bidding war with Netflix, which has been courting the company with a cash proposal and a strategic preference for its vast streaming and content library. The board at Warner Bros Discovery said it would review Paramount Skydance's revised proposal, but for now continues to recommend Netflix's offer. The details of the new bid were not fully disclosed, though the conversation followed Paramount's initial offer of about $108.4 billion, or $30 per share in cash, which has since been improved in an attempt to address concerns over financing certainty. The development keeps the market guessing about whether Paramount can outpace Netflix and secure control over a slate that includes some of the industry’s most valuable franchises.
Paramount’s bid is supported by Oracle co-founder Larry Ellison, a factor analysts say could influence financing reliability and execution. While the specifics of the revised offer remain unclear, industry observers believe a final price in the mid-$30s per share could be within reach, potentially around $34 per share according to some estimates. The price range, if realized, would represent a meaningful step up from the initial terms and could tilt the balance toward Paramount in a deal that has drawn scrutiny from investors and competitors alike.
Warner Bros Discovery has faced pressure from activists and shareholders who are watching whether the company’s plan to spin off its cable assets could impact the value of any deal. Paramount has publicly questioned the worth of the cable spinoff central to Netflix’s bid, a point of contention that adds layers of complexity to the negotiations. The drama intensified as Warner Bros Discovery was urged by investor Ancora Capital to reconsider its engagement with Paramount and explore the potential benefits of a different strategic path.
The timeline around the bidding war has been tight. Paramount was reportedly asked to submit its best and final offer after Warner Bros Discovery rejected an enhanced bid that included covering Netflix’s $2.8 billion termination fee. With a seven-day window to improve its bid, Paramount has stepped forward with a revised proposal that keeps Netflix in the race while signaling a serious appetite to win control of one of Hollywood’s most influential assets. As shareholders prepare to vote on Netflix’s deal, the industry watches to see whether Paramount’s strengthened bid can close the gap and reshape the streaming landscape.
