Warner Bros. Discovery reveals that Paramount has elevated its takeover bid to $31 US per share, igniting potential for a renewed bidding war with Netflix over the media powerhouse.
Paramount initially proposed $30 US per share in its all-cash, hostile approach to Warner shareholders last December, shortly after Warner agreed to sell its studio and streaming operations to Netflix for $27.75 US per share. The latest revision includes a boosted regulatory termination fee of $7 billion US. Paramount also advances a “ticking fee” for shareholders—now due by September’s end at 25 cents per share, totaling $650 million US—if the deal fails.
Warner Reviews Enhanced Proposal
Warner Bros. Discovery confirms it received the updated offer and is evaluating it closely. The board notes the proposal “could reasonably be expected to lead to” a superior bid under its Netflix agreement terms, though no final determination has been made on superiority.
A Netflix representative declined to comment on the development. Netflix targets only Warner’s studio and streaming assets, while Paramount seeks the full company, including networks like CNN and Discovery.
Industry Shake-Up on Horizon
A successful Paramount acquisition would consolidate HBO Max, iconic franchises such as Harry Potter, and potentially CNN under one entity, dramatically altering Hollywood and the broader media sector. Warner’s board continues to endorse its Netflix pact, but if Paramount’s offer proves superior, Netflix gains four days to match or improve it—or exit the contest.
Antitrust Scrutiny Intensifies
Months of escalating negotiations between Paramount, Warner, and Netflix draw warnings from lawmakers and industry groups about further consolidation in a market dominated by few giants. Concerns include job cuts, reduced filmmaking diversity, and higher streaming costs for consumers.
The U.S. Department of Justice launches reviews, with international regulators anticipated to follow. Paramount highlights Netflix’s dominant market value and potential SVOD monopoly risks. Netflix counters by emphasizing competition from platforms like YouTube and commits to preserving Warner’s studios and distribution, unlike a Paramount merger that would unite two major Hollywood studios plus news and theatrical outlets.
Political Dimensions Emerge
U.S. President Donald Trump voices past interest in facilitating a deal, later deferring to the Justice Department. Ties link Trump to Oracle founder Larry Ellison, father of Paramount Skydance CEO David Ellison, who supports the bid. This follows Skydance’s recent Paramount acquisition amid a settled $16 million lawsuit involving Trump and CBS’s 60 Minutes editing.
Under new CBS leadership, including editor-in-chief Bari Weiss, editorial shifts occur. Critics speculate similar changes at CNN under Paramount ownership. Trump met Netflix co-CEO Ted Sarandos, praising him publicly, while criticizing CBS decisions.
