Warner Bros. Discovery has confirmed that Paramount Skydance has increased its takeover offer to $31 per share in cash, intensifying a high-stakes acquisition battle that now places the media group’s board at the centre of two competing deals involving major global entertainment players.
The revised proposal, submitted during a limited waiver period granted under an existing merger agreement with Netflix, represents an increase from Paramount’s earlier $30-per-share offer and signals a renewed push to acquire the entire Warner Bros. Discovery business, including its cable networks and digital media assets.
Brandspur Brand News understands that the Warner Bros. Discovery board has begun formal consultations with its financial and legal advisers to assess whether the improved Paramount Skydance bid could reasonably be considered superior to the current Netflix transaction, which remains in force.
Under the terms of the Netflix agreement, Warner Bros. Discovery is permitted to engage with rival bidders during a short waiver window. If the board ultimately determines that Paramount’s proposal offers greater value, Netflix would be entitled to a four-day period to improve its own offer before the company can switch deals.
Paramount’s updated bid includes several financial assurances aimed at strengthening its position. These include a $7 billion breakup fee should the transaction fail to secure regulatory approval, as well as a commitment to cover the $2.8 billion termination fee Warner Bros. Discovery would owe Netflix if it abandons the existing merger. The offer also features a so-called ticking fee designed to compensate for delays caused by regulatory reviews.
Netflix had agreed in December to acquire Warner Bros. Discovery’s studio and streaming operations for $27.75 per share, valuing the assets at roughly $72 billion, with a total enterprise valuation of about $82.7 billion. That deal focuses on the company’s film, television and streaming businesses rather than its full portfolio.
Paramount Skydance, by contrast, is seeking to purchase the entire Warner Bros. Discovery group. Its earlier hostile tender offer targeted shareholders directly and covered assets ranging from CNN, TBS, HGTV and TNT to digital brands such as Bleacher Report and House of Highlights. The board has reiterated its advice that shareholders take no action while deliberations continue.
A successful Paramount-Warner Bros. Discovery merger would reshape the global media landscape, combining HBO Max with Paramount+ and uniting two of the world’s largest film studios, Warner Bros. and Paramount Skydance Studios. It would also place CNN and CBS News under a single ownership structure, a development likely to draw intense regulatory scrutiny.
Both the Paramount bid and the Netflix deal require approval from US and European regulators, with antitrust concerns already being raised by industry analysts and policymakers. Warner Bros. Discovery has said it will provide shareholders with an update once the board completes its review.
As the deadline for a potential counterbid approaches, the contest between Paramount and Netflix is emerging as one of the most consequential media acquisition battles of the year, with implications for streaming, broadcasting and global content distribution.
