Paramount Skydance Boosts Bid for Warner Bros Discovery to $108B, Challenging Netflix Merger Deal
New York/Los Angeles — In one of the most dramatic showdowns in Hollywood’s recent history, Paramount Skydance has submitted a significantly enhanced takeover offer for Warner Bros. Discovery, intensifying its competition with streaming rival Netflix for control of the iconic entertainment company and its priceless library of intellectual property. The move signals a renewed and aggressive attempt by Paramount to derail Netflix’s existing acquisition agreement and completely reshape the future of one of Hollywood’s most influential studios, whose assets span film, television, and streaming.
According to people familiar with the matter, Paramount Skydance has put forward a revised and higher bid for Warner Bros. Discovery, improving on its earlier proposal that was valued at approximately $108.4 billion — or roughly $30 per share in an all-cash offer that would give shareholders immediate liquidity. The enhanced proposal is designed to address financing concerns that previously made Warner’s board reluctant to consider it a “superior” alternative to Netflix’s deal, providing greater certainty around funding sources.
Paramount’s backers include billionaire Larry Ellison, co-founder of Oracle, who is personally guaranteeing large portions of the financing to reinforce the viability of the offer and demonstrate commitment to seeing the transaction through. This high-profile backing adds credibility to Paramount’s pursuit.
The company’s strategy includes covering the $2.8 billion termination fee Warner Bros. Discovery would owe Netflix if it abandons its existing merger agreement, removing a significant financial obstacle to switching allegiances. Additionally, Paramount has proposed a 25-cent “ticking fee” per share each quarter beginning in 2027 to compensate shareholders for any delay in closing the deal, sweetening the proposition for investors who might worry about extended regulatory review.
The Netflix Offer Still Holds Ground
Netflix’s competing proposal — announced last year — involves acquiring Warner Bros. Discovery’s Streaming & Studios business, including HBO Max and its vast content library spanning decades of beloved films and series, for $27.75 per share in cash, valuing the transaction around $82.7 billion. Unlike Paramount’s bid to buy the entire company, Netflix would split off Warner’s linear television and cable networks — including CNN, TNT, TBS, and Discovery Channel — into a separate publicly traded entity called Discovery Global, allowing investors to retain equity in two distinct businesses with different growth profiles.
This structure appeals to investors who believe the linear assets have different valuation metrics than the streaming business, potentially unlocking hidden value.
Warner’s board has consistently maintained that the Netflix transaction offers superior value due to this broader structural strategy and the potential upside from the spinoff, which could attract different investor bases for each entity. Shareholders are scheduled to vote on the Netflix deal on March 20, 2026, a pivotal moment that could determine the next chapter for the storied media company and its thousands of employees.
Regulatory and Shareholder Dynamics
Both deals face intense scrutiny from regulators in the United States, Europe and the United Kingdom, where competition authorities are increasingly concerned about media consolidation and market power. Paramount has already cleared an initial antitrust waiting period under U.S. law and secured foreign investment approval in Germany, but formal clearance remains uncertain as regulators dig deeper into competitive implications.
Netflix’s supporters argue that its proposal would ultimately face fewer regulatory hurdles, though U.S. authorities, including the Department of Justice, are examining potential competition issues linked to the combined streaming assets and whether the merger would give Netflix too much market power. The outcome of regulatory reviews could ultimately determine which deal, if any, proceeds.
Investor sentiment has swung between optimism and caution as the battle unfolds. Paramount’s share price ticked higher after news of the revised bid, while Warner Bros. Discovery stock has remained relatively stable amidst the bidding war, suggesting investors are waiting for clarity before committing.
Analysts have suggested that an offer in the mid-$30s per share could effectively break the impasse and make Paramount’s proposal genuinely superior to the Netflix agreement, though neither side has publicly confirmed such numbers. The bidding war could potentially escalate further if Netflix decides to counter.
What’s at Stake: Iconic IP and Industry Power
Behind these high dollar amounts lies control over some of the most coveted entertainment franchises and platforms in the world — assets that have shaped global popular culture for generations. Warner Bros. Discovery’s portfolio includes blockbuster movie properties like Harry Potter, DC Comics films featuring Batman, Superman, and Wonder Woman, and Game of Thrones, along with HBO’s premium TV content that has defined quality television for decades.
These assets could reshape any acquiring company’s strategic position in an increasingly competitive streaming landscape where content libraries determine subscriber retention. Netflix, by bringing these into its streaming ecosystem, would solidify its dominance in global media and add must-watch content that competitors cannot match.
Paramount’s full acquisition, meanwhile, would create a broader media powerhouse by adding linear networks and cable operations to a strong streaming base, giving it diversified revenue streams and negotiating leverage with distributors. The combined entity would rival any media company in scale.
A Bidding War to Define Hollywood’s Future
The standoff between Paramount and Netflix marks one of the most closely watched corporate tussles in the entertainment industry’s recent memory, with implications reaching far beyond the boardroom. Executives on both sides have ramped up lobbying efforts to win shareholder and regulator support, with Paramount emphasizing certainty and financial incentives while Netflix focuses on future growth opportunities and industry consolidation benefits.
The outcome will determine not just who owns Warner Bros. Discovery, but the competitive landscape of streaming, television production, and film distribution for years to come. If Netflix succeeds, it will become an even more dominant force. If Paramount wins, it will have pulled off one of the most audacious takeovers in Hollywood history.
As the March 20 vote approaches, Warner Bros. Discovery shareholders must weigh not just the numerical value of each proposal but the long-term strategic vision behind them and the regulatory risks each faces. Whether Paramount’s latest offer will be enough to sway opinions — or whether Netflix will counter with its own enhancements — remains a defining question in a battle that could reshape streaming, television and film production for years to come.
What Happens Next
The coming weeks will see intense lobbying by both suitors as they make their cases to shareholders and regulators. Warner’s board will need to assess whether Paramount’s enhanced offer now qualifies as “superior” under the terms of its Netflix agreement, potentially triggering negotiation windows.
Shareholders will ultimately decide which vision for the company’s future they prefer — integration with Netflix’s streaming machine or combination with Paramount’s broader media empire.
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Conclusion
The battle for Warner Bros. Discovery represents a defining moment in media industry consolidation. With billions of dollars and control of iconic franchises at stake, both Paramount and Netflix are pulling out all stops to win.
March 20 vote. $108B offer. The future of Hollywood hangs in the balance.
