Warner Bros. Discovery said a new offer of $31 per share from Paramount Skydance could result in a better deal than the existing deal with Netflix, opening up space for a new bidding battle for the traditional Hollywood production company.
The board’s assessment came after a seven-day period in which Paramount was again able to negotiate with Warner Bros. Paramount has been trying to acquire the parent company of HBO and CNN since September, raising the offer price several times and changing the terms as requested by the Warner Bros. board.
Read more:
Everything you need to know to protect your wallet
Warner Bros. Netflix Inc. is not withdrawing its recommendation that investors support Netflix’s $27.75-a-share deal to buy the company’s HBO studio and operation. Instead, it states that the new terms presented by Paramount reach the level necessary for negotiations to continue, including with Netflix itself.
“The board has not yet decided whether Paramount’s revised proposal is superior to the merger with Netflix,” the company said. The company plans further conversations with Paramount and said Netflix will have four business days to respond if the board approves the improved offer.
Read more:
Paramount’s revised proposal represents a $1 increase over its previous offer of $30 per share, which was valued at about $108 billion, including debt. Netflix’s proposal is valued at $82.7 billion on that same basis, although Warner Bros. believe that a spin-off of its cable channels could generate additional value for investors.
Paramount’s new proposal includes a $0.25 markup fee per share per quarter if the transaction is not completed by September 30, as well as a $7 billion payment to Warner Bros. if regulators veto the sale.
Paramount CEO David Ellison launched a tender offer to acquire shares of Warner Bros. in December, just days after the Netflix deal was announced. The move by Ellison, 43, comes after his $8 billion acquisition in August of Paramount, the parent company of CBS and MTV.
Continues after advertising
Studios such as Paramount and Warner have been under pressure to consolidate, given the decline in revenue from traditional media services, such as cable TV and cinemas. After investing heavily in building streaming platforms, studios have scaled back production and cut jobs to bring these operations to profitability.
Warner Bros. said in October that it was evaluating all options after receiving unsolicited expressions of interest from multiple groups. Paramount, Netflix and Comcast were among those interested in acquiring all or part of Warner Bros.
The dispute heated up, with Paramount accusing Warner Bros. to conduct a sales process that favored Netflix.
Continues after advertising
© 2026 Bloomberg L.P.
