Paramount reportedly floated an even higher price of $31 per share, but Warner Bros’ board signaled it remains committed to its pending merger with Netflix, suggesting the odds of a switch are low. Paramount has until February 23 to submit a new bid, which Netflix would be allowed to match under the terms of its merger agreement.
In a letter to Paramount, Warner Bros Chairman Samuel DiPiazza Jr. and CEO David Zaslav wrote: “Our Board has not determined that your proposal is reasonably likely to result in a transaction that is superior to the Netflix merger. We continue to recommend and remain fully committed to our transaction with Netflix.”
The contest between the two media giants underscores the high stakes in a shifting entertainment landscape. A successful acquisition would give the winning company control of Warner Bros’ vast film and television library, spanning classics such as Casablanca and Citizen Kane, as well as blockbuster franchises like Batman and Friends.
Market Reaction and Offer Details
Paramount’s $30-a-share offer values the company at $108.4 billion, while Netflix is offering $27.75 per share—or $82.7 billion—for Warner Bros’ studio and streaming assets. Shares responded accordingly: Paramount rose 6%, Warner Bros Discovery gained 2.3%, while Netflix dipped 1.4%.
Warner Bros indicated that a bid above $31 per share would be needed to seriously reopen negotiations, citing financing and certainty concerns. Paramount’s amended offer still leaves unresolved issues, including potential debt financing shortfalls and coverage of a $1.5 billion junior lien fee, according to the Warner board.
Shareholder Vote and Strategic Moves
Despite ongoing negotiations, Warner Bros is moving forward with a shareholder vote on the Netflix merger scheduled for March 20. The merger would take effect after Warner Bros spins off its Discovery Global cable operations—including CNN, TLC, Food Network, and HGTV—into a separate publicly traded company. Estimates place Discovery Global’s value between $1.33 and $6.86 per share.
Paramount has sought to strengthen its position with a personal guarantee of $40 billion in equity from Oracle founder Larry Ellison, father of Paramount CEO David Ellison, and by offering to cover the $2.8 billion breakup fee Warner Bros would owe Netflix if the deal collapsed. Paramount is also pushing to add directors to Warner Bros’ board, including Matt Halbower of Pentwater Capital Management, which owns roughly 50 million Warner Bros shares and supports the bid.
Activist Pressure and Regulatory Scrutiny
Warner Bros faces additional pressure from activist investor Ancora Holdings, which has voiced opposition to the Netflix deal. Regulatory approval remains a key hurdle, with U.S. and global authorities likely to review potential impacts on consumer pricing and the creative economy.
Paramount and Netflix have said they are engaging with competition authorities worldwide, including the U.S. Department of Justice, as the high-profile battle over Warner Bros’ future continues.