Paramount Skydance Corp has raised its takeover bid for Warner Bros. Discovery, intensifying a contest for control of the long-established studio. According to reporting from Bloomberg that cites sources familiar with the matter, the new approach is intended to challenge a previously announced deal between Warner Bros. and Netflix.
The revised proposal represents an enhancement to a prior all-cash offer of $30 per share that Paramount first presented to Warner Bros. shareholders in December. Insiders say Paramount has also moved to address concerns raised by Warner Bros. Discovery's board by increasing the clarity and firmness of its financing commitments.
Netflix remains an active rival in the process, having earlier agreed to acquire Warner Bros.' film, television and HBO assets for $27.50 per share. That earlier arrangement contemplates a complex separation of Warner Bros.' cable networks, which would include major channels such as CNN and TNT.
Warner Bros. Discovery recently reopened formal discussions with Paramount under a week-long negotiation window that is set to expire on Monday. Per the timeline reported, if the board concludes the Paramount Skydance proposal is superior, Netflix would be afforded four days to submit a competing offer.
Backers of the Paramount effort include Oracle co-founder Larry Ellison, who is reported to be providing equity support exceeding $40 billion through his family interests and other investors. Paramount Skydance itself was formed through a combination that incorporated David Ellison's Skydance Media, and the acquirer has characterized the transaction as an opportunity to accelerate its evolution into a major entertainment industry player.
The ultimate resolution of this bidding conflict carries outsized implications for the industry. Observers in the reporting note that the winner could substantially reshape the sector's competitive landscape: a Paramount victory would be a rapid leap toward greater scale for that group, while a Netflix success would mark a landmark consolidation for a key streaming competitor and could establish a dominant new organizational configuration in entertainment.
Summary
- Paramount Skydance has improved its all-cash offer for Warner Bros. Discovery, enhancing financing certainty relative to an earlier $30-per-share bid.
- Netflix previously reached a $27.50-per-share agreement to acquire Warner Bros.' film, TV and HBO assets; that deal includes a complex spin-off of cable networks, including CNN and TNT.
- Warner Bros. Discovery reopened negotiations with Paramount for a one-week period ending Monday; if the board favors the new bid, Netflix would have four days to respond.
Key points
- Transaction dynamics: The process now features multiple binding timelines and a heightened focus on financing credibility, which the bidder has aimed to shore up.
- Sectors affected: The outcome will materially affect the media and entertainment sectors, including streaming services, cable networks and the broader M&A market for content owners.
- Strategic stakes: Backing by major private investors has increased the scale of available equity capital, altering the competitive posture of the bid.
Risks and uncertainties
- Board decision risk - The Warner Bros. Discovery board must determine whether Paramount's revised offer is superior; that judgment will dictate whether Netflix receives the opportunity to counter.
- Counterparty response window - If the board favors Paramount, Netflix has a defined four-day period to present a matching or superior proposal, creating short-timeline strategic uncertainty.
- Transaction complexity - The Netflix agreement contemplates a complicated spin-off of cable networks such as CNN and TNT, a structural element that adds execution risk to any alternative deal paths.
As the negotiation window approaches its end, market participants will be watching board deliberations closely. The interplay between firm financing assurances, competing acquisition structures and the compressed response timetable will shape how this contest resolves and what it means for the future architecture of the global entertainment industry.