As expected, Warner Bros. Discovery has announced that it is reviewing the sweetened bid for the company offered by David Ellison's Paramount Skydance. Specific details of the revised bid have not been publicly shared (yet), but it's expected to be a sizeable increase from the last one.
Paramount previously offfered $30 per share, with a so-called "ticker" that would raise the price for every quarter the deal had not closed beyond the end of 2026. As of now, WBD is recommending that shareholders vote for the previously announced Netflix deal.
"Following engagement with PSKY during the seven-day limited waiver period, we received a revised PSKY proposal to acquire WBD, which we are reviewing in consultation with our financial and legal advisors," reads a statement shared by the WBD board. "We will update our shareholders following the Board’s review."
"The Netflix merger agreement remains in effect, and the Board continues to recommend in favor of the Netflix transaction," it added. "WBD shareholders are advised not to take any action at this time with respect to the amended PSKY tender offer."
The expectation from here is that Netflix will match whatever this latest Paramount bid is, though it may not be exactly the same. That's because Paramount wants Warner Bros. Pictures, HBO, and all its cable channels like CNN, TNT, Discovery, HGTV, and Food Network. Netflix is only after the film and TV studios.
Money isn't really an issue for either company, something that's evident from Paramount's pledge to cover the $2.8 billion fee that Netflix will be owed if WBD backs out of the current deal and chooses Ellison instead.
Ellison remains steadfast that Paramount has a clearer path to U.S. regulatory approval for a Warner Bros. deal because of its close ties to President Donald Trump's administration.
These renewed talks with Paramount come in no small part due to pressure from Ancora Capital after the activist investor built a roughly $200 million stake in WBD and accused the company of failing to adequately engage with Netflix's current rival.
Warner Bros. confirmed earlier this month that it would hold a shareholder vote on the Netflix deal on March 20. The chair of the company's board of directors, Samuel A. Di Piazza, Jr., said last week, "We continue to believe the Netflix merger is in the best interests of WBD shareholders due to the tremendous value it provides."
He added, "With Netflix, we will create a brighter future for the entertainment industry – providing consumers with more choice, creating and protecting jobs."
Keep checking back here for updates as we have them.