Paramount Increases Bid for Warner Bros, Intensifying Bidding War

Warner Bros. Discovery is revisiting talks with Paramount Skydance after the CBS-linked media group raised its offer to $31 per share in cash. This new bid intensifies the ongoing bidding war with Netflix for control of the Hollywood studio.

Paramount’s improved proposal surpasses its earlier bid and prompts Warner’s board to reconsider, as Netflix had originally been favored with an $82.7 billion offer for Warner’s studios and streaming assets.

The revised offer includes better financial terms, such as a larger termination fee and quarterly “ticking” payments to Warner shareholders if the deal is delayed past Sept. 30. These adjustments aim to address financing concerns and make Paramount’s offer more attractive.

• Warner Bros. Discovery revisits Paramount’s revised $31 per share offer in bidding war
• Paramount raises bid to $31 per share, intensifying Netflix rivalry for Warner's assets
• Warner board reviews Paramount's improved offer, Netflix bid still on the table

Warner’s board has not yet decided if the new bid is better than Netflix’s offer, which remains recommended for a shareholder vote on March 20. Under the existing agreement with Netflix, Warner has four business days to match any superior offer, should Paramount’s bid be deemed better.

The rival bids reflect differing strategies: Netflix seeks Warner’s film and television assets, and HBO Max, while Paramount’s offer aims to acquire the entire company, including its cable networks. Analysts suggest that even higher bids, potentially around $34 per share, may be necessary to end the bidding war and attract investors.

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The outcome of this contest will shape the future of the media industry, determining who controls iconic franchises and studios. Netflix’s deep financial resources could allow it to counter, but regulatory scrutiny and investor sentiment will play a crucial role as the deadline looms.