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Paramount Raises Offer for Warner Bros Discovery as Bidding Battle Intensifies

By  |  February 25, 2026
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Warner Bros Discovery has reopened discussions with Paramount Skydance after the rival bidder increased its offer to $31 per share in cash, escalating an already fierce contest for control of the entertainment giant.

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    The studio, known for franchises such as Batman and Harry Potter, has become the center of a high-stakes takeover battle. According to Reuters, Warner’s board decided on Tuesday to reengage with Paramount following the improved proposal, raising questions about whether Netflix will remain the company’s preferred merger partner.

    Paramount drew Warner back into talks last week by signaling it could enhance its cash bid for shareholders. Per Reuters, the revised proposal not only lifts the offer price but also strengthens deal protections. Paramount increased the termination fee it would pay if the transaction fails to secure regulatory approval to $7 billion, up from $5.8 billion. In addition, the company agreed to compensate Warner shareholders with 25 cents per share for every quarter beyond September 30 that the deal remains incomplete.

    The updated bid also addresses financing concerns. Paramount has pledged to contribute additional equity if banks express reservations about its capacity to fund the transaction at closing, according to Reuters.

    Warner’s board said it has not yet concluded whether Paramount’s revised offer is superior to its existing merger agreement with Netflix, but directors plan to continue discussions. Under the terms of its agreement with Netflix, the streaming company has four business days to submit a revised proposal if Warner determines a superior offer has emerged.

    Related: Paramount Skydance’s $108B Bid for Warner Bros Discovery Clears Key US Antitrust Hurdle

    In a statement, Paramount said: “Paramount welcomes the WBD Board’s determination and looks forward to continuing to engage constructively with WBD to deliver the benefits of Paramount’s proposal to WBD shareholders, the creative community and consumers.”

    The competing bids differ significantly in scope. Paramount’s $31-per-share cash offer is for the entire company. Netflix, by contrast, has proposed $27.75 per share in cash — valuing the deal at approximately $82.7 billion including net debt — for Warner’s film and television studios, its content library and the HBO Max streaming service, per Reuters.

    As part of the Netflix transaction, Warner Bros Discovery intends to spin off its television division into a separately traded entity named Discovery Global. The ultimate value of Netflix’s offer hinges in part on the debt load assigned to Discovery Global and the company’s market valuation once it begins trading.

    Warner’s board estimates that Discovery Global could be worth between $1.33 and $6.86 per share. That range, according to Reuters, could potentially lift total shareholder returns above Paramount’s earlier $30-per-share proposal.

    With both bidders refining their strategies and financial terms, the battle for Warner Bros Discovery appears far from settled.

    Source: Reuters