Paramount Skydance has submitted a higher offer for Warner Bros Discovery, intensifying efforts to derail the HBO Max owner’s proposed deal with Netflix, a source familiar with the matter has told Reuters. The revised bid has improved on Paramount’s initial $108.4 billion, or $30 per share, offer for the entire company and has sought to address Warner Bros’ concerns over financing certainty.
The bidding war for Warner Bros Discovery, which owns major franchises such as “Harry Potter” and “Game of Thrones,” has escalated as competition in the streaming-led market has intensified, as per media reports. Reuters has not been able to immediately determine how the revised offer has been structured. Warner Bros and Paramount have declined to comment, while Netflix has not immediately responded to requests for comment.
Netflix, which has offered $27.75 per share in cash, valuing the studios and streaming assets at $82.7 billion, has been allowed to match Paramount’s latest bid. Variety has reported that Warner Bros is likely to take Paramount’s offer under review while continuing to recommend the Netflix agreement to shareholders.
Paramount’s rival bid has been backed by Oracle billionaire Larry Ellison. The CBS parent has been asked to submit its “best and final offer” after Warner Bros rejected an enhanced proposal that had included paying Netflix’s $2.8 billion termination fee and adding a 25-cent per share quarterly “ticking fee” from next year to compensate shareholders for delays in closing. Warner Bros has earlier said that Paramount’s February 10 offer fell short of what its board would consider a superior proposal and had set a February 23 deadline for a revised bid.
Analysts at MoffettNathanson have previously said that an offer in the range of $34 per share from Paramount would end the bidding war and avoid further debate over Discovery Global’s valuation. Warner Bros has planned to spin off its cable TV assets, including CNN and HGTV, into Discovery Global, which it has estimated could fetch between $1.33 and $6.86 per share.
Netflix has said its proposal would give shareholders additional upside from the Discovery Global spinoff, which Warner Bros has argued would create value through greater strategic, operational and financial flexibility. However, Paramount has maintained that the cable spinoff central to Netflix’s offer is effectively worthless.
Warner Bros, led by David Zaslav, has come under pressure from activist investor Ancora Capital, which has built a roughly $200 million stake in the company and has accused it of failing to adequately engage with Paramount. The investor has warned that it will vote against the Netflix deal and hold the board accountable at the annual meeting if discussions with Paramount are not reopened.
Shares of Paramount have risen 1.3% to $10.70 in extended trading.
Warner Bros shareholders have been set to decide on Netflix’s offer on March 20, a vote that has been seen as pivotal in determining the future of one of Hollywood’s most prominent studios. Even if approved, the transaction would still face scrutiny from U.S. and European competition authorities assessing potential impacts on competition and consumer choice.
Lawmakers from both parties have raised concerns about potential harm to consumers and creatives. Paramount has said it has secured foreign-investment clearance in Germany and has been in discussions with antitrust regulators in the U.S., the European Union and the UK, arguing it has a clearer path to approval than Netflix.
Paramount’s bid would create a studio larger than market leader Disney and combine two major TV operators. It would also transfer control of CNN to the Ellisons, who recently acquired CBS News and appointed Bari Weiss as editor-in-chief.
For Netflix, a combination with HBO Max would make it the largest global streaming platform, with around half a billion subscribers. Co-CEO Ted Sarandos has expressed confidence in securing regulatory approval, stating that the deal would avoid job cuts in an industry already affected by fewer productions and uneven box-office returns.
Netflix has argued that bundling its streaming service with HBO Max would lower costs for consumers. However, its position that it needs Warner Bros to compete with YouTube is expected to face scrutiny from the U.S. Department of Justice, which has been examining whether Netflix has engaged in anti-competitive practices. Netflix has cited data from Nielsen showing that Google’s YouTube accounts for more viewing time on U.S. televisions than other streaming services.
