Revised Offer Expected Above $30 Per Share
David Ellison’s Paramount Skydance faces a Monday deadline to submit what is expected to be its best and final offer for Warner Bros. Discovery. Industry insiders indicate the revised proposal could reach approximately $32 per share, exceeding its earlier $30 bid and intensifying competition with Netflix.
Warner Bros. Discovery’s board opened a seven-day negotiation window with Paramount, with Netflix’s consent, to evaluate a potentially improved proposal. That period concludes at 11:59 p.m. ET on Feb. 23. Paramount has not publicly confirmed its next move.
Netflix Holds Matching Rights
Under the current agreement, Netflix has four days to respond after Paramount submits a revised offer. The streaming company can either match the improved bid or withdraw from the process.
Netflix co-CEO Ted Sarandos recently emphasized the company’s disciplined acquisition approach. While declining to discuss bidding strategy, he noted Netflix has historically been willing to step away if valuations rise too high.
If Warner Bros. Discovery accepts a higher Paramount offer, it would trigger a $2.8 billion breakup fee payable to Netflix. Paramount has indicated it would cover that cost as part of its revised bid.
Board Pressure and Valuation Debate
Warner Bros. Discovery CEO David Zaslav and board chairman Samuel Di Piazza Jr. previously requested clarification from Paramount regarding whether it would exceed $31 per share. Analysts at MoffettNathanson suggest Paramount may need to raise its bid closer to $34 per share to secure a decisive advantage.
Netflix’s existing agreement would acquire Warner Bros.’ studios and streaming businesses for $27.75 per share, while shareholders would retain equity in a spin-off housing Discovery’s linear networks such as CNN and TBS.
Some analysts question whether a substantially higher bid from Netflix would make financial sense, citing potential debt increases, revenue overlap and programming cost pressures.
Regulatory Scrutiny Intensifies
The Justice Department has expanded its antitrust review of the proposed Netflix-Warner Bros. Discovery transaction. Inquiries have focused on whether the merger could lessen competition in the entertainment programming market under federal antitrust statutes.
Netflix maintains that it operates in a highly competitive industry and denies monopolistic concerns. Meanwhile, Paramount announced that its own bid cleared a procedural milestone under the Hart-Scott-Rodino Act following compliance certification, though Netflix’s legal team cautioned that such steps do not signal regulatory approval.
Political Commentary Enters the Fray
The bidding process has also drawn political attention. Former President Donald Trump publicly criticized a Netflix board member and urged action, though Sarandos characterized the acquisition as a business matter subject to regulatory review rather than political influence.
With shareholder votes scheduled for March and regulatory scrutiny ongoing, the next several days could determine whether Paramount escalates its offer, Netflix counters or the high-profile media consolidation effort takes another unexpected turn.
