Warner Bros. Discovery revealed that Paramount has upped its bid to acquire the company’s shares to $31 US each, potentially sparking a new round of bidding against Netflix for control of the Hollywood giant. Paramount initially offered $30 US per share directly to Warner stakeholders in a hostile bid back in December, shortly after Warner’s agreement to sell its studio and streaming services to Netflix at $27.75 US per share.
In addition to the increased purchase price, Warner confirmed that Paramount has raised its regulatory termination fee to $7 billion US. Paramount also adjusted the “ticking fee” promised to shareholders in case the deal falls through, now set at 25 cents per share or $650 million US by the end of September.
Following discussions with Paramount and receiving a revised offer, Warner acknowledged the potential of Paramount’s proposal to surpass Netflix’s offer, although Warner’s board has yet to make a final decision. Meanwhile, a Netflix spokesperson declined to comment.
The possible acquisition of Warner Bros. Discovery would redefine the entertainment landscape, consolidating properties like HBO Max, iconic franchises such as “Harry Potter,” and potentially even CNN under one entity, depending on the outcome of the Netflix versus Paramount rivalry. Paramount aims to acquire Warner Bros. entirely, including CNN and Discovery networks, while Netflix is solely interested in the studio and streaming business. Warner’s board has consistently supported the Netflix deal and reiterated its commitment to the agreement.
If Paramount’s offer is deemed superior by Warner’s board, Netflix will have a four-day window to match or revise its bid or walk away from the deal. The ongoing dispute between Paramount, Warner, and Netflix has drawn attention from lawmakers and industry groups concerned about potential job losses, reduced filmmaking diversity, and increased streaming costs resulting from further industry consolidation.
Antitrust issues loom large as the U.S. Department of Justice and other countries begin scrutinizing the potential sale. Both Paramount and Netflix have defended their proposals as beneficial to consumers and the industry, highlighting contrasting arguments on market dominance and content preservation.
Political factors also play a role, with President Donald Trump’s connections to Paramount’s backers raising questions about regulatory approvals. The contentious merger discussions coincide with Trump’s previous involvement in media deals and disputes over editorial decisions.
Under the new ownership, changes in editorial direction are anticipated, mirroring shifts seen at CBS post-acquisition. Paramount’s bid could potentially reshape Warner’s CNN, drawing criticism and scrutiny over potential editorial changes. Despite public criticism of editorial decisions, Trump has engaged with key industry players, maintaining an active interest in the unfolding corporate drama.