Warner Bros. Discovery confirms higher takeover bid from Paramount

Warner Bros. Discovery has confirmed receiving a higher takeover offer from a consortium involving Paramount Global and Skydance Media, escalating an ongoing acquisition battle that could reshape the global media and streaming landscape.

In a statement released on Tuesday, Warner Bros. Discovery said the revised offer increases the proposed purchase price to $31 per share in cash, an additional $1 per share compared to Paramount’s previous bid. The proposal also includes an extra quarterly payment of $0.25 per share beginning in the fourth quarter of 2026 if the deal is not finalized by that time.

The company noted that the new offer could potentially qualify as a “superior proposal,” meaning its board is obligated to review the terms and determine whether it delivers greater value to shareholders, despite having already agreed to a merger arrangement with Netflix.

Paramount raises financial incentives to strengthen takeover bid

As part of the revised terms, Paramount and Skydance have agreed to provide additional financial guarantees aimed at strengthening their bid and mitigating regulatory risks.

These include a commitment to pay Warner Bros. Discovery up to $7 billion if regulators block the merger. The consortium also agreed to cover the $2.8 billion breakup fee Warner would owe Netflix if it chooses to terminate its existing merger agreement in favour of the Paramount-Skydance proposal.

The offer structure also excludes Warner Bros. Discovery’s linear television networks, which the company plans to spin off into a separate entity, from certain merger calculations, potentially simplifying the transaction and making it more appealing to shareholders.

Warner Bros. Discovery said the improved proposal reflects growing confidence among rival bidders in the company’s long-term strategic value, particularly its streaming platform, studio operations, and global content portfolio.

Paramount Skydance launches $108bn hostile bid to take over Warner Bros

Despite acknowledging the financial improvements in Paramount’s bid, the company emphasised that it has not yet determined whether the proposal is definitively superior to Netflix’s existing agreement.

Netflix retains right to respond as takeover battle enters new phase

Under the terms of Warner Bros. Discovery’s agreement with Netflix, the streaming giant retains the right to respond if the Paramount-Skydance offer is formally classified as superior.

Netflix would have four business days to either match or exceed the new proposal before Warner Bros. Discovery makes a final decision on which bidder to accept.

This provision effectively ensures a competitive bidding environment, raising the possibility of further increases in the acquisition price and improving potential returns for shareholders.

Warner Bros. Discovery said it will now enter detailed negotiations with Paramount and Skydance to further assess the revised offer and its implications.

However, the company also clarified that it continues to support its existing merger agreement with Netflix and has not yet made any decision to terminate that deal.

The takeover battle highlights intensifying consolidation pressures in the global entertainment industry, as major media companies seek to strengthen their competitive position amid rising production costs, subscriber competition, and the shift toward streaming-driven revenue models.

The outcome of the negotiations could significantly influence the structure of the media sector, potentially determining which company gains control over Warner Bros. Discovery’s extensive film, television, and streaming assets.