Warner Bros Discovery has said Paramount’s sweetened $31-a-share cash offer for the entire company could “reasonably be expected” to lead to a superior deal to Netflix’s existing agreement for its studio and streaming assets.
In a statement, WBD said Paramount’s revised proposal also includes a commitment to cover the $2.8 billion (€2.6 billion) termination fee payable to Netflix should it walk away from the current transaction. The board stopped short of declaring the offer superior, but confirmed it would continue negotiations with Paramount.
Under the terms of its agreement, Netflix would have 4 business days to match any superior proposal.
Paramount’s improved bid includes an additional $0.25 per share quarterly “ticking fee” for every quarter the deal does not close after September 2026, as well as a $7 billion break fee if regulatory approval is not secured.
The Ellison-backed group is seeking to acquire all of WBD, including its cable networks. By contrast, Netflix has agreed to pay $27.75 per share in cash for WBD’s studio and streaming assets, excluding its cable TV business.
The developments raise the prospect of a renewed bidding contest for control of Warner Bros, the Hollywood studio behind HBO and franchises including Harry Potter, Friends and Game of Thrones.
Regulatory scrutiny remains a key variable. Paramount said it has complied with a US Department of Justice review process, while Netflix is facing an early-stage antitrust review related to its proposed acquisition.
WBD said it had not yet determined whether Paramount’s revised proposal constitutes a superior offer, but indicated talks would continue as it evaluates its options.
