WB Reveals Higher Bid from Paramount in Hollywood Studio Takeover Battle

Warner Bros. Discovery announced that Paramount Global has raised its takeover offer to $31 per share, potentially igniting a renewed bidding war with Netflix over control of the Hollywood giant’s assets.

Paramount’s previous hostile bid stood at $30 per share since December, when the company, backed by Skydance Media, sought to challenge Warner’s existing agreement to sell its studio and streaming assets to Netflix for $27.75 per share.

According to statements reported by CNBC, Warner had entered a seven-day negotiation window with Paramount, as permitted under its merger agreement with Netflix.

Warner confirmed it received a revised all-cash offer of $31 per share from Paramount and is currently reviewing it with financial and legal advisers. The board has not yet determined whether the updated proposal constitutes a “superior offer” compared to the Netflix deal.

The amended Paramount proposal includes: A $7 billion breakup fee if regulatory approval for the merger is not obtained, in addition to coverage of the $2.8 billion termination fee Warner would owe Netflix if it withdraws from their existing agreement.

Additional delay-related fees tied to regulatory approvals.

Under the terms of the Netflix agreement, if Warner deems Paramount’s bid superior, Netflix would have four days to submit a counteroffer.

In December, Netflix agreed to acquire Warner’s studio and direct-to-consumer streaming assets for $27.75 per share, valuing those assets at approximately $72 billion and the overall company at about $82.7 billion.

Paramount’s broader takeover proposal aims to acquire Warner in full, including cable networks such as CNN, TBS, HGTV, and TNT, along with digital properties like Bleacher Report and House of Highlights.

A merger between Paramount and Warner Bros. Discovery would combine streaming platforms Paramount+ and HBO Max, as well as unite two of the top five film studios by revenue, Warner Bros. and Paramount Pictures, under one corporate umbrella. It would also place CBS News and CNN under common ownership.

Both the Netflix–Warner agreement and any potential Warner–Paramount merger would require approval from U.S. and European regulators. Antitrust concerns have already been raised by analysts and industry observers, given the scale of consolidation involved.

Warner’s board has advised shareholders to take no action for now while it continues evaluating Paramount’s revised proposal.