Warner Bros. Discovery announces that Paramount has increased its takeover offer to $31 per share, sparking potential renewed competition with Netflix for control of the entertainment powerhouse.
Paramount initially proposed $30 per share in its all-cash hostile bid directly to Warner shareholders in December, shortly after Warner agreed to sell its studio and streaming operations to Netflix for $27.75 per share. In addition to the higher price, Paramount boosted its regulatory termination fee to $7 billion and advanced a ticking fee of 25 cents per share—totaling $650 million—payable to shareholders by the end of September if the deal fails.
Warner Reviews Revised Proposal
Warner Bros. Discovery confirms it received the updated offer and is evaluating it. The board notes the proposal could qualify as superior under its existing Netflix agreement, though no final determination has been made. A Netflix representative offered no immediate comment.
Netflix targets only Warner’s studio and streaming assets, while Paramount seeks the full company, including networks like CNN and Discovery.
Potential Media Industry Shakeup
A successful acquisition by either party promises to transform Hollywood. Paramount’s full buyout would consolidate HBO Max, iconic franchises such as Harry Potter, CNN, and Discovery under one entity. Netflix’s partial deal focuses on production and streaming capabilities. Warner’s board continues to support the Netflix pact but allows time for Paramount’s bid if deemed better, giving Netflix four days to counter or withdraw.
Antitrust Scrutiny Intensifies
Over months of negotiations, regulators and industry groups raise alarms about consolidation in a concentrated market. Concerns include job cuts, reduced film diversity, and higher streaming costs for consumers. The U.S. Department of Justice has launched reviews, with international probes anticipated.
Paramount highlights Netflix’s dominant market value and risks of further streaming monopoly. Netflix counters by emphasizing competition from platforms like YouTube and commits to expanding Warner’s studios and distribution, unlike a Paramount merger that would unite two major studios plus news and theatrical outlets.
Political Dimensions Emerge
U.S. President Donald Trump suggests potential influence on approvals but defers to the Justice Department. Trump maintains ties with Oracle founder Larry Ellison, father of Paramount Skydance CEO David Ellison, who supports the bid. Recent Skydance acquisition of Paramount followed a $16 million settlement over a CBS 60 Minutes edit dispute. Under new CBS leadership, including editor-in-chief Bari Weiss, editorial shifts occur amid ongoing tensions with Trump over programming.
