The board of Warner Bros. Discovery (WBD) is evaluating a new, improved takeover proposal from Paramount Global, which has offered $31 per share for the entire company. This development places Paramount in direct competition with Netflix, which has made a separate bid for WBD's streaming and studio assets, setting the stage for a potential corporate battle for one of Hollywood's most storied studios.
In a statement to shareholders on Tuesday, WBD's board stated that Paramount's latest offer "could reasonably be expected" to lead to a proposal superior to Netflix's existing one. However, the board emphasised it had "not made a determination" on whether Paramount's bid is definitively better. Should the board rule in Paramount's favour, Netflix would have a four-day window to submit a higher counter-offer to avoid losing its chance to acquire assets like HBO.
Revised Offer Addresses Previous Concerns
Paramount's current $31-per-share bid marks an increase from its previous public offers of $30 per share. The new proposal has gained traction by addressing WBD's earlier concerns, which included issues over an equity backstop and initial reluctance to cover costs like a potential breakup fee payable to Netflix. Paramount has strengthened its position by securing a financial guarantee from billionaire Larry Ellison—father of Paramount's CEO, David Ellison—and agreeing to reimburse WBD for any payout owed to Netflix if the deal switches.
Paramount has long argued its full-company offer represents better value, contending that WBD's traditional cable networks, including CNN and TruTV, hold limited worth when accounting for their substantial debt load.
Netflix's Competing Vision for Hollywood
Netflix, the streaming market leader, has presented its $27.75-per-share offer for WBD's studio and HBO assets as a simpler, more Hollywood-friendly alternative. The company has publicly argued that its approach would "protect and create jobs in America," a pointed contrast to Paramount, which has promised investors $6 billion in cost savings—largely through synergies—if its acquisition succeeds.
This focus on potential job cuts has become a flashpoint. WBD warned last week that a Paramount deal could trigger an employee exodus, as staff fear widespread redundancies following the merger.
Regulatory and Political Dimensions
The high-stakes contest is further complicated by the regulatory landscape in the United States and internationally. President Donald Trump has offered mixed signals regarding Netflix's proposed acquisition, initially suggesting its market share "could be a problem" before pledging to remain neutral and leave the antitrust review to the US Department of Justice.
A White House spokesperson told Business Insider the president "has great relationships with all parties in this potential transaction and remains neutral in this process with no preference for either bidder." However, Trump later commented that Netflix should remove former Obama and Biden administration official Susan Rice from its board "or pay the consequences," following her criticism of him on a podcast. Netflix co-CEO Ted Sarandos dismissed the remark, stating the company's bid for Warner Bros. is "not a political deal."
The coming days are critical, as WBD's board deliberation will determine the next phase of this corporate showdown. A decision favouring Paramount's full-company bid would force Netflix to decide whether to raise its offer for the prized studio and streaming assets. For WBD shareholders, the competition between the two suitors currently presents a favourable scenario, with the potential for increased valuation regardless of the ultimate winner.