Paramount raises Warner Bros. Discovery offer to $31, igniting potential bidding war with Netflix amid intensifying media industry consolidation talks
TOI GLOBAL DESK | TOI GLOBAL | Feb 25, 2026, 10:21 IST
Warner Bros Discovery sets March 20 date as shareholder vote for Netflix merger, seeks final offer from Paramount Skydance
Paramount has raised its takeover bid for Warner Bros. Discovery to $31 a share, escalating the battle for control of the media giant. The all-company offer contrasts with Netflix’s earlier interest, which focused solely on Warner’s studio and streaming assets. Warner Bros. Discovery’s board is now weighing Paramount’s proposal as investors brace for a potential bidding showdown.
Paramount has raised its takeover offer for Warner Bros. Discovery to $31 per share, potentially igniting a new bidding war with Netflix. This revised offer, which also includes an increased regulatory termination fee and an earlier deadline for the deal to close, comes after Paramount's initial $30 per share bid in December. Warner Bros. Discovery's board has not yet determined if Paramount's latest offer is superior to its existing agreement with Netflix.
Paramount's offer aims to acquire Warner Bros. Discovery in its entirety, encompassing its networks and the Discovery content. This contrasts with Netflix's previous deal, which was for the sale of Warner's studio and streaming business. The companies have been engaged in a public back-and-forth regarding the strength of their respective deals.
Paramount's revised offer includes an increased regulatory termination fee to $7 billion. Additionally, the company has agreed to pay 25 cents per share for every quarter the deal drags on past the end of September, a change from the previous agreement that allowed for delays past the end of the year.
Warner Bros. Discovery stated that Paramount's latest bid "could reasonably be expected to lead to" a superior offer as defined under its current agreement with Netflix. However, the company's board has not officially determined if Paramount's offer is indeed better than Netflix's proposal.
A Netflix spokesperson declined to comment when reached by The Associated Press. Paramount did not immediately respond to a request for further comment, though the company confirmed the submission of its revised offer earlier in the day.
Warner's board has consistently supported its deal with Netflix and maintained that their agreement remains in place. If Warner's board later deems Paramount's offer superior, Netflix would have four days to match or revise its proposal, or it could choose to withdraw from the bidding.
Lawmakers and entertainment trade groups have expressed concerns about the potential consolidation of power in the media industry resulting from either deal. Critics suggest this could lead to job losses, reduced diversity in filmmaking, and increased costs for consumers.
Both Paramount and Netflix have argued that their proposals are beneficial for consumers and the broader industry. The companies have publicly engaged in regulatory arguments against each other. Paramount has highlighted Netflix's larger market value, suggesting that an acquisition of Warner by Netflix would further dominate the subscription video on demand space.
Netflix, in turn, is attempting to persuade regulators that it faces competition from broader video libraries, such as Google's YouTube. Netflix has also stated that its acquisition would preserve and grow Warner's studios and film distribution operations, as it currently lacks similar assets. A Warner-Paramount merger, however, would combine two of Hollywood's last five major studios, along with theatrical channels and news networks.
Political considerations could also influence the outcome. Former President Donald Trump previously commented on his potential involvement in a deal, though he later walked back those statements. Regulatory approval ultimately rests with the Department of Justice.
Trump has a close relationship with Oracle founder Larry Ellison, whose son David Ellison is the CEO of Paramount Skydance. The push to acquire Warner comes months after Skydance completed its own merger with Paramount Global. This merger followed a contentious period that included a lawsuit settlement over editing decisions at Paramount's "60 Minutes" program on CBS.
Under new ownership, CBS has seen significant changes, including the appointment of Free Press founder as editor-in-chief of CBS News. Critics have voiced concerns that similar changes could occur at Warner's CNN if Paramount's bid is successful.
Trump has publicly criticized Paramount regarding editorial decisions at CBS' "60 Minutes." He has also praised Netflix co-CEO Ted Sarandos, calling him a "fantastic man." However, Trump has also criticized Netflix in other ways, including demanding that the company remove former U.N. ambassador Susan Rice from its board. Rice was reappointed to Netflix's board in 2023. Trump's calls for her removal followed comments she made on a podcast hosted by Preet Bharara. Rice stated that corporations and others who "take a knee to Trump" would face negative consequences.
Wyatte Grantham-Philips, a business reporter for The Associated Press, covers trending news and is based in New York.
Paramount's offer aims to acquire Warner Bros. Discovery in its entirety, encompassing its networks and the Discovery content. This contrasts with Netflix's previous deal, which was for the sale of Warner's studio and streaming business. The companies have been engaged in a public back-and-forth regarding the strength of their respective deals.
Paramount's revised offer includes an increased regulatory termination fee to $7 billion. Additionally, the company has agreed to pay 25 cents per share for every quarter the deal drags on past the end of September, a change from the previous agreement that allowed for delays past the end of the year.
Warner Bros. Discovery stated that Paramount's latest bid "could reasonably be expected to lead to" a superior offer as defined under its current agreement with Netflix. However, the company's board has not officially determined if Paramount's offer is indeed better than Netflix's proposal.
A Netflix spokesperson declined to comment when reached by The Associated Press. Paramount did not immediately respond to a request for further comment, though the company confirmed the submission of its revised offer earlier in the day.
Warner's board has consistently supported its deal with Netflix and maintained that their agreement remains in place. If Warner's board later deems Paramount's offer superior, Netflix would have four days to match or revise its proposal, or it could choose to withdraw from the bidding.
Lawmakers and entertainment trade groups have expressed concerns about the potential consolidation of power in the media industry resulting from either deal. Critics suggest this could lead to job losses, reduced diversity in filmmaking, and increased costs for consumers.
Both Paramount and Netflix have argued that their proposals are beneficial for consumers and the broader industry. The companies have publicly engaged in regulatory arguments against each other. Paramount has highlighted Netflix's larger market value, suggesting that an acquisition of Warner by Netflix would further dominate the subscription video on demand space.
Netflix, in turn, is attempting to persuade regulators that it faces competition from broader video libraries, such as Google's YouTube. Netflix has also stated that its acquisition would preserve and grow Warner's studios and film distribution operations, as it currently lacks similar assets. A Warner-Paramount merger, however, would combine two of Hollywood's last five major studios, along with theatrical channels and news networks.
Political considerations could also influence the outcome. Former President Donald Trump previously commented on his potential involvement in a deal, though he later walked back those statements. Regulatory approval ultimately rests with the Department of Justice.
Trump has a close relationship with Oracle founder Larry Ellison, whose son David Ellison is the CEO of Paramount Skydance. The push to acquire Warner comes months after Skydance completed its own merger with Paramount Global. This merger followed a contentious period that included a lawsuit settlement over editing decisions at Paramount's "60 Minutes" program on CBS.
Under new ownership, CBS has seen significant changes, including the appointment of Free Press founder as editor-in-chief of CBS News. Critics have voiced concerns that similar changes could occur at Warner's CNN if Paramount's bid is successful.
Trump has publicly criticized Paramount regarding editorial decisions at CBS' "60 Minutes." He has also praised Netflix co-CEO Ted Sarandos, calling him a "fantastic man." However, Trump has also criticized Netflix in other ways, including demanding that the company remove former U.N. ambassador Susan Rice from its board. Rice was reappointed to Netflix's board in 2023. Trump's calls for her removal followed comments she made on a podcast hosted by Preet Bharara. Rice stated that corporations and others who "take a knee to Trump" would face negative consequences.
Wyatte Grantham-Philips, a business reporter for The Associated Press, covers trending news and is based in New York.