Warner Bros. Discovery confirms new offer from Paramount
Paramount Skydance has made a likely more favorable offer for Warner Bros. Discovery, opening a new round of negotiations in efforts to woo the HBO Max streaming service and Warner Bros. studios to stimulate the economy, amid a frantic battle to stay afloat in the entertainment sector as more consumers turn to streaming to watch their favorite movies, shows and sports.
Warner said early Tuesday that it has received new terms from Paramount, even as it continues to move forward with a deal it needs to make to sell its streaming and studio assets to Netflix as it converts its traditional TV assets into a new publicly traded entity.
“Following our engagement with PSKY during the limited seven-day waiver period, we have received a revised PSKY proposal to acquire WBD, which we are reviewing in consultation with our financial and legal advisors,” the company said in a statement. “We will notify our shareholders following the Board’s review. The Netflix merger agreement remains in effect and the Board of Directors continues to recommend in favor of the Netflix transaction. WBD shareholders are advised not to take any action with respect to the amended PSKY tender offer at this time.”
The company did not disclose the financial details of Paramount’s latest offer.
Despite the deal, Paramount has continued to push for deeper negotiations to buy Warner. Monday capped a busy seven-day period in which the WBD board sought Netflix’s blessing to enter into discussions with Paramount to “seek clarity” on its “best and final offer.” WBD asked Paramount Skydance “to clarify your proposal, which we understand will include a WBD per share price in excess of $31” in a letter from Warner Bros. Discovery CEO David Zaslav and Chairman Samuel Di Piazza Jr. to the board of directors of Paramount.
Netflix has four days to match Paramount’s new offer or it could drop out of the bidding process. A source close to the situation noted that WBD is legally obligated to recommend the signed deal with Netflix, worth nearly $83 billion. Paramount has made a $108 billion bid for the entirety of WBD, including its cable channels. Netflix buys Warner Bros. and HBO Max.
Netflix co-CEO Ted Sarandos, in a February 20 interview with Varietydeclined to say how the streamer would respond to a higher offer from Paramount. But he did say that Netflix has a “rich history” of “being willing to walk away and make someone else pay too much for things.”
Under Netflix’s agreement with WBD, the streamer would acquire Warner Bros. studios and streaming businesses. buy for $27.75 per share (in cash, a change Netflix made last month from its previous cash-and-stock offering). WBD shareholders would retain shares in Discovery Global, the company’s proposed spinoff entity that houses CNN, TBS and other linear networks, as well as Discovery+.
Ellison first approached WBD CEO Zaslav in September 2025, initially offering $19 per share for Warner Bros. Discovery. That came just weeks after Ellison’s Skydance Media completed its acquisition of Paramount Global. Paramount’s interest in WBD led the board to initiate a formal M&A review process – and the board chose Netflix as the winning bidder. WBD’s board has previously rejected Paramount’s takeover offer nine times.
Paramount’s takeover bid is backed by Larry Ellison (David’s tech billionaire father) and RedBird Capital Partners. The company has secured debt financing from Bank of America, Citigroup and Apollo Global Management. Paramount’s offer also includes capital from the sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi.
