Warner Bros. Discovery reveals that Paramount has increased its takeover offer to $31 US per share, sparking potential renewed competition with Netflix for control of the entertainment powerhouse.
Paramount initially proposed $30 US per share in its all-cash, hostile bid directly to Warner shareholders in December, shortly after Warner agreed to sell its studio and streaming operations to Netflix for $27.75 US per share. In addition to the higher price, Paramount boosted its regulatory termination fee to $7 billion US and advanced a ticking fee for shareholders—now set at 25 cents per share, totaling $650 million US—if the deal fails by the end of September.
Warner Reviews Revised Proposal
Warner Bros. Discovery confirms it received the updated offer from Paramount and is evaluating it closely. The board notes the proposal could qualify as superior under its existing Netflix agreement, though it has not yet made that determination. Warner maintains support for the Netflix deal, which targets only the studio and streaming assets. Paramount seeks the full company, including networks like CNN and Discovery.
A Netflix representative offered no immediate comment on the development.
Potential Media Industry Overhaul
A successful acquisition by either suitor promises to transform Hollywood and the broader media sector. Consolidation could unite HBO Max, iconic franchises such as Harry Potter, and possibly CNN under one entity. Warner’s leadership continues to favor the Netflix arrangement.
Should Warner deem Paramount’s bid superior, Netflix gains four days to match or improve its offer—or exit the contest.
Antitrust Scrutiny and Industry Concerns
Over recent months, the contest between Paramount and Netflix has intensified amid warnings from lawmakers and entertainment organizations. Observers highlight risks of further industry consolidation, including job cuts, reduced filmmaking diversity, and higher streaming costs for consumers.
These factors fuel significant antitrust issues. The U.S. Department of Justice has launched reviews, with additional international probes anticipated. Regulatory approval will prove pivotal.
Rival Arguments on Competition
Both bidders assert their deals benefit consumers and the sector. Paramount emphasizes Netflix’s dominant market value, warning that the acquisition would strengthen its grip on subscription video services. Netflix counters by comparing itself to expansive platforms like YouTube and pledges to maintain Warner’s studios and distribution—unlike a Paramount merger, which would merge two of Hollywood’s remaining major studios alongside theatrical and news operations.
Political Dimensions Emerge
U.S. President Donald Trump has commented on the proceedings, initially suggesting involvement before deferring to the Justice Department. Trump shares ties with Oracle founder Larry Ellison, father of Skydance CEO David Ellison, who supports Paramount’s effort. This follows Skydance’s recent acquisition of Paramount, approved shortly after a $16 million US settlement with Trump over edits to a CBS 60 Minutes segment on Kamala Harris.
Under new Paramount ownership, CBS News appointed Bari Weiss, founder of Free Press, as editor-in-chief, prompting discussions of potential shifts at CNN. Trump has criticized Paramount’s editorial choices at 60 Minutes and recently met Netflix co-CEO Ted Sarandos, describing him positively.
