Warner Bros Discovery is reportedly considering reopening sale talks with rival Hollywood studio Paramount Skydance after an enhanced offer, a move that could affect its current deal with Netflix.
Members of Warner Bros’ board are discussing whether Paramount’s revised proposal offers a superior deal, Bloomberg reported, citing sources. The board has not yet decided how to respond and may still adhere to its current deal with Netflix.
Paramount’s updated bid, submitted last week, includes provisions to offer shareholders additional cash for every quarter the deal remains unclosed beyond the current year. The CBS owner has also committed to covering any breakup fee Warner Bros would owe Netflix should it withdraw from their existing arrangement, though the per-share offer itself has not been increased.
Reuters was unable to immediately verify the report. Paramount, Warner Bros and Netflix did not respond to requests for comment.
Paramount said it has offered shareholders a 25-cent-per-share quarterly “ticking fee” (about $650 million) in cash starting in 2027 until closing and agreed to cover Warner Bros’ $2.8 billion breakup fee to Netflix. However, it did not raise its $30-per-share offer, valuing the deal at $108.4 billion including debt.
In a statement, Paramount CEO David Ellison said that the “additional benefits” announced earlier this week “clearly underscore our strong and unwavering commitment to delivering the full value WBD shareholders deserve for their investment.”
Both Netflix and Paramount covet Warner Bros for its leading film and television studios, extensive content library and major franchises such as Game of Thrones, Harry Potter and DC Comics superheroes Batman and Superman.
Activist investor Ancora Holdings, which has built a nearly $200 million stake, last week said it plans to oppose the Netflix deal, arguing the board did not sufficiently engage with Paramount over its rival bid, which includes cable assets like CNN and TNT.