Paramount has raised its takeover offer for Warner Bros. Discovery to $31 per share, up from the $30 per share WBD previously rejected as inferior to its existing deal with Netflix. Alongside the higher price, Paramount has also added a $7 billion regulatory termination fee, payable to WBD if the deal falls through due to regulatory issues. In response, the WBD board has extended the window for talks with Paramount and confirmed the new proposal could reasonably be expected to lead to a superior offer, though it has not yet made that official determination.
The WBD merger agreement with Netflix remains in place for now. If and when the board formally declares Paramount’s bid superior, Netflix will have four days to counter. Analysts expect Netflix to match the competing offer, and the streaming giant has already revised its bid to all cash following earlier pressure from Paramount. Netflix co-CEO Ted Sarandos acknowledged his company has a reputation for walking away rather than overpaying, but given the significant capital Netflix has already invested in pursuing Warner Bros. and HBO, most observers consider that unlikely.
Netflix has been critical of Paramount’s approach, warning that Paramount’s financing challenges and rapid deleveraging plans pose significant risks to the broader entertainment industry.
The Netflix deal is structured around WBD splitting into two publicly traded companies this summer. The studio and streaming assets would be acquired by Netflix under the Warner Bros. name, while WBD’s cable channels including CNN would become a separate company called Discovery Global. WBD has scheduled a special shareholder meeting for March 20 and is recommending shareholders vote to approve the Netflix deal, which values those assets at $27.75 per share.
The merger also drew attention from President Trump over the weekend, who called on Netflix to remove board member Susan Rice or face consequences. Netflix co-CEO Ted Sarandos told the BBC that Trump likes to make statements on social media and reiterated the deal is a business decision, not a political one.
