Warner Bros. Discovery reveals that Paramount has elevated its takeover bid to $31 US per share, igniting potential renewed competition with Netflix for control of the major Hollywood studio.
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. In addition to the higher price, Paramount has boosted its regulatory termination fee to $7 billion US and accelerated a ‘ticking fee’ for shareholders—now 25 cents per share, totaling $650 million US—if the deal fails by late September.
Warner Bros. Discovery confirms it received the revised offer after resuming discussions with Paramount and is evaluating it closely. The board notes the proposal could qualify as superior under its Netflix agreement, though no final determination has been made.
Strategic Differences in Acquisition Targets
Netflix targets only Warner’s studio and streaming assets, while Paramount seeks the full company, including networks like CNN and Discovery. Warner’s board continues to support the Netflix pact but must assess if Paramount’s terms prove better. Should it do so, Netflix gains four days to counter or withdraw.
Reshaping Hollywood’s Media Landscape
A successful Paramount acquisition would consolidate HBO Max, iconic franchises such as Harry Potter, and potentially CNN under one entity, dramatically altering Hollywood and broader media dynamics. Observers highlight risks of industry consolidation, including job cuts, reduced filmmaking diversity, and higher streaming costs for consumers.
Antitrust Scrutiny and Regulatory Battles
Both bidders claim their deals benefit consumers and the sector. Paramount criticizes Netflix’s market dominance in subscription video, arguing it would intensify with Warner’s assets. Netflix counters that rivals like YouTube pose greater threats and emphasizes preserving Warner’s studios, unlike a Paramount merger that would unite two top studios plus news outlets.
The U.S. Department of Justice has launched reviews, with international regulators likely to follow. Outcomes may hinge on antitrust approvals amid concerns over market power concentration.
Political Influences in the Mix
U.S. President Donald Trump once hinted at involvement in deal approvals but later deferred to the Justice Department. He maintains ties to Oracle founder Larry Ellison, father of Skydance CEO David Ellison, who supports Paramount’s push following Skydance’s recent Paramount acquisition. Trump has met Netflix co-CEO Ted Sarandos and voiced criticisms of CBS editorial choices under new leadership.
