Warner Bros. Discovery has disclosed that Paramount has increased its bid to acquire the company to $31 US per share, potentially sparking a new round of competition with Netflix for control of the renowned Hollywood entity. Paramount’s initial direct bid to Warner stakeholders in December offered $30 US per share, shortly after Warner had struck a deal with Netflix for $27.75 US per share.
Apart from raising the proposed purchase price, Warner confirmed that Paramount has upped the regulatory termination fee to $7 billion US. Additionally, Paramount agreed to expedite a previously-promised “ticking fee” to shareholders if the deal fails by the end of September — amounting to 25 cents per share, totaling $650 million US.
Following discussions with Paramount and the reception of a revised offer, Warner is currently evaluating the new proposal. While acknowledging that Paramount’s revised bid could potentially lead to a superior offer as per their existing agreement with Netflix, Warner’s board has yet to make a final decision on the comparison between the two offers.
Netflix declined to comment on the matter when contacted on Tuesday afternoon. Paramount aims to acquire Warner Bros. in its entirety, including networks like CNN and Discovery, while Netflix is solely interested in acquiring Warner’s studio and streaming business. Warner’s board has consistently supported the Netflix deal and affirmed its commitment to the agreement.
In the event that Warner’s board deems Paramount’s offer superior, Netflix will have a four-day window to match or amend its proposal or decide to withdraw. The ongoing back-and-forth between Paramount, Warner, and Netflix has drawn attention from lawmakers and industry groups, who warn about the potential consolidation of power in the entertainment industry and its adverse effects on job security and diversity in filmmaking.
Antitrust concerns loom large, and the final decision on the Warner sale may hinge on regulatory approvals. The U.S. Department of Justice has initiated reviews, with other countries expected to follow suit. Paramount and Netflix continue to advocate for the merits of their respective proposals, emphasizing consumer benefits and industry dynamics. The companies have publicly criticized each other’s arguments on regulatory grounds.
The involvement of politics adds another layer of complexity, with U.S. President Donald Trump’s connections to key figures involved in the bidding process. Trump’s previous statements on potential involvement in the deal have raised eyebrows, although he later clarified that regulatory approval rests with the Justice Department. Paramount’s bid is heavily supported by Oracle founder Larry Ellison, whose son is the CEO of Paramount’s Skydance. Trump’s public statements and interactions with industry figures have generated further interest in the outcome of the bidding war.