Warner Bros. Discovery announced that Paramount has increased its takeover bid to $31 US per share, potentially sparking a new bidding contest with Netflix for control of the Hollywood powerhouse. Paramount had initially offered $30 US per share in its hostile all-cash bid to Warner stakeholders in December, shortly after Warner’s agreement to sell its studio and streaming business to Netflix for $27.75 US per share.
In addition to the higher purchase price, Warner revealed on Tuesday that Paramount raised its regulatory termination fee to $7 billion US. Paramount also accelerated the “ticking fee” promised to shareholders in case the deal falls through by the end of September, now set at 25 cents per share, totaling $650 million US.
Following renewed negotiations with Paramount, Warner confirmed receiving a revised offer and is currently evaluating it. Warner suggested that Paramount’s revised bid may lead to a superior offer under their existing agreement with Netflix, but the final decision on the better offer is pending board assessment.
Netflix declined to comment on the recent developments.
A potential acquisition of Warner Bros. Discovery would significantly impact Hollywood and the media landscape, combining assets such as HBO Max, iconic titles like “Harry Potter,” and possibly CNN under one roof, depending on the outcome between Netflix and Paramount.
While Paramount aims to purchase Warner Bros. entirely, including CNN and Discovery networks, Netflix is solely interested in acquiring Warner’s studio and streaming operations. Warner’s board has consistently supported the Netflix deal and affirmed this stance on Tuesday.
If Warner’s board determines Paramount’s offer as superior, Netflix would have a brief window to match or adjust its proposal or opt out entirely.
The ongoing battle between Paramount, Warner, and Netflix has attracted attention from lawmakers and industry groups concerned about further consolidation in an already concentrated entertainment sector, potentially leading to job cuts, reduced diversity in filmmaking, and higher consumer streaming costs.
Antitrust issues loom large, with the approval of a Warner sale hinging on regulatory clearance from the U.S. Department of Justice and other global authorities.
Paramount and Netflix have defended their bids as beneficial for consumers and the industry, each presenting arguments against the other’s proposal on regulatory grounds.
Political factors also play a role, with President Trump’s connections to Paramount’s backers, including Oracle founder Larry Ellison. Trump’s involvement in the deal has been a subject of speculation, although he later clarified that regulatory approval rests with the Justice Department.
CBS, under new ownership post-merger with Paramount, has witnessed editorial changes, raising concerns about potential shifts at Warner’s CNN if Paramount secures the deal.
Trump’s public criticisms of Paramount’s editorial decisions and his prior interactions with Netflix executives further add a political dimension to the ongoing corporate battle.