Warner Bros. Discovery Faces a New Bid from Paramount

Warner Bros. Discovery Weighs Paramount Offer Amid Netflix Deal

Warner Bros. Discovery (WBD) is now reviewing a fresh, higher proposal from Paramount Skydance after it had already agreed to sell its studio and streaming arm to Netflix. The board will compare the new bid against the existing Netflix agreement.

• Re‑opened Negotiations
  Last week, WBD re‑opened talks with Paramount during a seven‑day pause granted by Netflix. The pause allows WBD to explore other offers while remaining bound to the Netflix deal.

• Paramount’s Bid
  The latest offer seeks to acquire all of WBD, including major networks and digital properties. Paramount has already launched a hostile tender at $30 per share, covering the entire company and its assets such as CNN, TBS, and Bleacher Report.

• Netflix’s Position
  Netflix values WBD’s studio and streaming business at about $27.75 per share (≈ $72 billion in assets, enterprise value ≈ $82.7 billion). If Paramount’s price is more attractive, Netflix has a four‑day window to raise its own offer. Failure to improve would trigger a $2.8 billion breakup fee, which Paramount has agreed to cover.

• Strategic Implications
  A merger would combine Warner Bros. with Paramount Skydance, merge HBO Max with Paramount+, and bring CNN and CBS News under one umbrella—creating two of the largest movie studios and a dominant streaming portfolio.

• Regulatory Hurdles
  Both the Netflix deal and a potential Paramount merger must clear U.S. and European regulators, with concerns about antitrust implications.

WBD is evaluating the revised offer with its financial and legal advisers. Shareholders will be informed once the board reaches a decision.