Warner Bros reviews Paramount’s higher bid amid Netflix fight

Warner Bros Discovery is considering a revised bid from Paramount Skydance as the battle for the Hollywood studio heats up. The value of the new offer has not been disclosed, but it is higher than Paramount’s previous $30-per-share bid, or $108.4 billion including debt, according to a source familiar with the matter.

The move comes after Warner Bros previously favored Netflix’s $27.75-per-share deal, valued at $82.7 billion, for the studio and streaming assets. “The Netflix merger agreement remains in effect and the Board continues to recommend in favor of the Netflix transaction,” Warner Bros said, News.Az reports, citing Reuters.

If Warner Bros deems Paramount’s new offer superior, Netflix will have four days to respond under the December agreement. Either deal would reshape Hollywood, granting the acquirer control of major franchises such as Harry Potter, Game of Thrones, and DC Comics, along with an extensive content library.

Paramount argues its offer provides better value by acquiring Warner Bros’ TV assets, which it considers nearly worthless to Netflix, while Netflix could enhance its bid by spinning off cable assets. Paramount, led by CEO David Ellison, also believes its deal has a smoother path to U.S. regulatory approval due to its political ties.

Investor pressure played a role in the renewed Paramount talks. Activist firm Ancora Capital, holding a $200 million stake in Warner Bros, criticized the board for favoring Netflix and urged reconsideration. Analysts suggest a $34-per-share offer from Paramount could end the bidding war.

Warner Bros shareholders are scheduled to vote on the Netflix deal on March 20.

News.Az