Two people with knowledge of the discussions told sources that Netflix has room to raise its existing proposal for Warner Bros Discovery's studio and streaming operations if competing bidder Paramount Skydance increases its own offer.
The reported dynamic has put the two media conglomerates squarely at odds over control of Warner Bros and its extensive catalogue of properties. Those holdings include noted franchises such as "Harry Potter", "Game of Thrones", DC Comics and Superman.
Netflix's current bid for Warner Bros' studio and streaming businesses stands at $27.75 per share, valuing that portion of the company at $82.7 billion, according to the people familiar with the matter. Paramount's rival proposal covers the entire company and is valued at $108.4 billion, a package that includes Discovery Global and its television assets such as CNN and HGTV.
Warner Bros is moving ahead with a shareholder vote on Netflix's offer set for March 20, but the company has given Paramount a one-week window to produce a more compelling bid, the sources said. The vote is proceeding despite the window for a competing offer.
Representatives for Netflix and Warner Bros declined to comment on the situation.
Details and implications
- Netflix's $27.75-per-share bid is targeted at Warner Bros' studio and streaming operations and is valued at $82.7 billion.
- Paramount Skydance's offer, by contrast, is for the whole company and is valued at $108.4 billion, including Discovery Global's television assets.
- Warner Bros has scheduled a shareholder vote on March 20 for Netflix's offer but has also afforded Paramount a week to submit a superior proposal.
The people who relayed these details characterized Netflix as having ample cash on hand and the flexibility to respond if Paramount Skydance raises the stakes. Beyond those comments, the sources did not provide additional specifics about potential revised offers or timing.
Section note
Information in this report is based on the accounts of two people with knowledge of the negotiations. The parties involved did not comment when asked.