Paramount Skydance Raises Bid for Warner Bros Discovery, Challenging Netflix Deal

Warner Bros Discovery (WBD) is at the center of a high-stakes media merger battle after Paramount Skydance submitted a revised acquisition offer that could surpass Netflix’s existing agreement. The updated bid increases the purchase price to $31 per share in cash, along with a ticking fee of $0.25 per share per quarter if the transaction does not close, beginning January 1, 2027. Warner Bros Discovery confirmed that the proposal could reasonably be considered a superior offer, triggering a four-day window for Netflix to match the new terms.

Netflix’s current all-cash offer stands at $27.75 per share and values Warner Bros Discovery at an enterprise value of $82.7 billion, with an equity value of $72 billion. The streaming giant projects $2 billion to $3 billion in annual cost savings if the deal proceeds. Paramount Skydance’s revised proposal values WBD significantly higher, with an enterprise value of $111 billion and equity value of $80.6 billion. The offer represents a 147% premium to WBD’s undisturbed stock price of $12.54 on September 10, compared with Netflix’s 121.3% premium.

Paramount’s financing package is fully committed, including $43.6 billion in equity backing from the Ellison family and RedBird Capital Partners, a $43.3 billion personal guarantee from Larry Ellison, and $54 billion in debt financing from major banks and global investment funds. The company has also agreed to pay a $7 billion breakup fee and cover the $2.8 billion termination fee WBD would owe Netflix, while backstopping a planned debt exchange.

If Netflix prevails, it would add Warner Bros’ film studios, HBO network, gaming assets, and HBO Max streaming platform to its portfolio of over 325 million subscribers. Paramount Skydance, currently serving 79.1 million subscribers, is seeking to acquire all of WBD’s film, television, streaming, and cable network assets, including HBO and CNN.