The battle for Warner Bros. Discovery intensified Tuesday as Paramount Skydance submitted a revised bid, throwing a wrench into Netflix’s tentative agreement to acquire the media giant’s studios and streaming assets. The move extends a complex and increasingly public negotiation that has seen political maneuvering and the involvement of some of the industry’s most powerful figures.
Warner Bros. Discovery confirmed receiving the new terms from Paramount, stating in a release that its board is reviewing the proposal in consultation with financial and legal advisors. However, the company reiterated its continued recommendation of the existing deal with Netflix, valued at nearly $83 billion, and emphasized that shareholders should not take any action at this time. “The Netflix merger agreement remains in effect,” the statement read.
While the financial details of Paramount’s latest offer remain undisclosed, it represents an escalation from previous bids. Paramount’s initial offer stood at $108.4 billion, while Netflix’s current offer is valued at $82.7 billion. The revised bid is believed to address Warner Bros. Discovery’s concerns regarding financing certainty, according to sources familiar with the matter.
The situation is further complicated by a four-day window now open for Netflix to match Paramount’s new offer. Netflix, however, has signaled a willingness to walk away if the price becomes too steep. In a recent interview with Variety, Netflix co-CEO Ted Sarandos stated the streamer has a “rich history” of being “willing to walk away and let someone else overpay for things.”
The proposed acquisition isn’t simply a financial transaction; it’s become entangled with political considerations. President Trump recently demanded that Netflix fire board member Susan Rice, a former Obama and Biden administration official, or “pay the consequences,” injecting a partisan element into the bidding war. This demand underscores Paramount’s strategic deployment of former Trump administration officials and cultivation of ties with Republican lawmakers in an effort to disrupt the Netflix deal.
Paramount’s pursuit of Warner Bros. Discovery began in September 2025, with an initial offer of $19 per share. This came shortly after David Ellison’s Skydance Media completed its acquisition of Paramount Global. Despite nine previous rejections of its takeover offers, Paramount has persisted, backed by the financial resources of Larry Ellison (David’s father) and RedBird Capital Partners, as well as debt financing from major financial institutions and sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi.
Under the current agreement with Netflix, the streamer would acquire Warner Bros.’s studios and streaming businesses for $27.75 per share in cash. Warner Bros. Discovery shareholders would retain equity in a newly formed entity, Discovery Global, which would encompass the company’s traditional television assets, including CNN, TBS, and Discovery+.
The negotiations have been marked by a series of strategic maneuvers. Warner Bros. Discovery recently sought Netflix’s consent to engage in discussions with Paramount to “seek clarity” on its “best and final offer.” In a letter to Paramount’s board, Warner Bros. Discovery CEO David Zaslav and board chairman Samuel Di Piazza Jr. Requested clarification on a proposal that would value Warner Bros. Discovery shares at more than $31.
The outcome of this bidding war will have significant implications for the future of the streaming landscape. The consolidation of media assets reflects the growing competition for subscribers and the need for scale in a rapidly evolving market. The potential merger of Warner Bros. Discovery with either Paramount or Netflix could reshape the industry, impacting content creation, distribution, and consumer choice.
Shareholders of Warner Bros. Discovery are scheduled to vote on the Netflix deal on March 20. The coming days will be critical as Paramount attempts to sway the board and shareholders with its revised offer, while Netflix weighs its options and potentially prepares to defend its position. The situation remains fluid, and the ultimate victor remains uncertain.
