Warner Bros. Discovery has told Netflix that a revised offer from Paramount Skydance may be a better deal, giving Netflix just four business days to decide whether to enter a full bidding war for HBO and other WBD studio assets.
Paramount Skydance’s updated offer covers the entire Warner Bros. Discovery company, including its cable networks, and raises the purchase price to $31 a share from the previous $30. This values Warner Bros. Discovery at $77 billion. The offer also includes a $7 billion reverse termination fee if regulators block the deal, and Paramount has offered to cover any costs WBD incurs from canceling its current agreement with Netflix.
According to NBC News, back in December, Netflix announced a $72 billion deal to acquire Warner Bros. Discovery’s film studio, HBO, and the HBO Max streaming service. WBD announced a definitive agreement with Netflix on January 20.
Paramount’s higher bid has put Netflix in a difficult position, with the bidding war far from over
The WBD board has not made a final decision and is still recommending the Netflix deal, without officially withdrawing that recommendation. However, their statement indicated they plan to “engage further” with Paramount, suggesting they may push for an even higher offer. HBO has had its share of behind-the-scenes controversies over the years, including a costly incident from Season 1 that HBO worked hard to keep hidden.
This bidding war began when Paramount made an unsolicited offer to buy the entire company late last year. WBD publicly announced in October that it was exploring its options. After months of competing offers, WBD had initially rejected multiple Paramount bids and categorized the Netflix proposal as the superior offer, which led Paramount to escalate its efforts into what appeared to be a hostile takeover attempt. Netflix later amended its bid to an all-cash offer.
Media analysts have suggested that an offer at or around $34 a share would likely end the bidding war. Netflix declined to comment, while Paramount said it “welcomes” the announcement and looks forward to continuing to engage constructively.
Adding further complexity are political implications. Paramount Skydance is led by David Ellison, son of Oracle co-founder Larry Ellison, who has a close relationship with President Trump. Trump said earlier this month he planned to stay out of the situation, but he also recently threatened Netflix with consequences over a board member, calling on the company to fire former Biden adviser Susan Rice. Some antitrust experts have raised concerns that either deal could be blocked.
John Mark Newman, a former senior antitrust official, said that from an antitrust perspective, “it’s a deal that should raise serious, serious concerns and probably be challenged and blocked,” adding that blocking the merger would benefit consumers, producers, directors, actors, and movie theater owners. Netflix, however, argues the deal would benefit consumers by lowering the cost of bundled streaming services.
Netflix co-CEO Ted Sarandos told lawmakers that “this is not a typical media merger where you end up with what’s called the Noah’s Ark problem, two of everything,” and said it is likely you would see “even more of an outcome of high-quality films for the theaters if this deal goes through.” Warner Bros. shareholders are set to vote on the pending transaction on March 20, though any deal will still require government regulatory approval.
Published: Feb 25, 2026 12:15 pm