Paramount Skydance has significantly increased its offer for Warner Bros. Discovery. This move intensifies a high-stakes bidding war for the storied Hollywood company. The latest proposal aims to outbid rival Netflix. This news is currently trending in the entertainment industry.
Skydance Media, led by David Ellison, submitted an improved offer. It raises their previous $30-per-share bid. Specific details of the revised terms were not immediately available. However, the updated offer includes added protections for Warner Bros. shareholders. These include a ticking fee. This fee compensates shareholders for delays in regulatory approvals. It also introduces a termination fee. This outlines compensation if the deal does not close.
Warner Bros. Discovery’s board has agreed to reopen talks with Paramount. This is for a limited seven-day window. Netflix granted a waiver for these discussions. The period concludes on February 23, 2026. The board seeks clarity on Paramount’s ‘best and final’ offer. Warner Bros. leadership still backs its existing deal with Netflix.
The Bidding War Heats Up
The competition for Warner Bros. Discovery is fierce. Netflix and Paramount Skydance are the main contenders. Netflix previously agreed to acquire Warner’s studio and streaming assets. This deal is valued at $72 billion. Including debt, it totals $82.7 billion. Netflix offered $27.75 per share for these divisions. This agreement involves spinning off Warner’s cable networks.
Paramount Skydance’s bid covers the entire company. This includes its cable networks like CNN and TBS. Their initial offer was $108.4 billion, or $30 per share. The revised bid aims to address Warner’s financing concerns. Oracle billionaire Larry Ellison is backing Paramount’s offer.
Key Players and Their Strategies
David Ellison leads Skydance Media. His company recently merged with Paramount Global. This created a new entity named Paramount Skydance. This combined company seeks to compete with media giants like Amazon and Netflix. Paramount Skydance argues its bid faces fewer regulatory hurdles than Netflix’s. They also warn Netflix’s deal could harm theatrical releases.
Netflix co-CEO Ted Sarandos stated the company is a disciplined buyer. He noted Netflix is willing to walk away if a deal overpays. The streaming giant has granted Warner Bros. Discovery a waiver. This allows talks with Paramount. However, Netflix remains confident its transaction provides superior value.
Implications for the Industry
The outcome of this battle will shape the entertainment industry. Warner Bros. Discovery’s board continues to recommend the Netflix deal. Shareholders are scheduled to vote on March 20, 2026. Paramount Skydance views this acquisition as a path to dominance. The ongoing negotiations create significant current news. This corporate drama highlights the intense transformation within the media landscape. It underscores the growing competition for content and market share. The future of major film franchises like “Harry Potter” and “Game of Thrones” hangs in the balance. This trending situation impacts creators and investors alike.
Paramount’s offer includes a significant termination fee payable to Netflix. This would be $2.8 billion if Warner Bros. Discovery exits its deal with Netflix. The company also offered incentives for potential delays. This includes a quarterly payment of 25 cents per share starting in 2027. Paramount’s current bid is reportedly around $31-$32 per share. The U.S. antitrust waiting period for Paramount’s offer has expired. This removes a key statutory hurdle.
The market reaction has been varied. Shares of Warner Bros. Discovery saw gains. This followed reports of Paramount’s increased bid. The strategic implications for Netflix and Paramount Skydance are substantial. A successful acquisition would bolster content libraries and market share. This enhances their competitiveness globally. This entire situation is a major piece of current industry news.
