NEW YORK — In a dramatic reversal that could reshape Hollywood’s landscape, Warner Bros. Discovery announced Thursday that Paramount’s enhanced takeover proposal now outshines the media company’s existing agreement with Netflix.
The entertainment conglomerate behind HBO Max, DC Studios, and blockbuster franchises like “Harry Potter” had previously supported Netflix’s bid for several months. However, following Skydance-backed Paramount’s decision to raise its comprehensive buyout offer to $31 per share along with additional sweeteners, Warner’s leadership declared the revised proposal represents a “company superior proposal.”
This development sets the stage for what could become an intense new round of corporate warfare. Netflix now faces a four-day deadline to either equal Paramount’s terms or enhance its current $27.75 per share proposal, which targets Warner’s entertainment and streaming divisions specifically.
Despite Thursday’s announcement, Warner Bros. Discovery emphasized that Netflix’s original agreement remains valid. The board clarified it “has not withdrawn or modified” its earlier endorsement of the Netflix transaction.
Netflix representatives did not provide immediate comment when contacted.
Paramount CEO David Ellison celebrated the development, stating his company was “pleased WBD’s Board has unanimously affirmed the superior value of our offer.”
The corporate battle reflects fundamentally different strategic visions. While Netflix seeks Warner’s studio and streaming assets, Paramount pursues complete ownership, including traditional television networks such as CNN and Discovery.
Recent weeks have witnessed an increasingly aggressive public competition between the two suitors. Thursday’s announcement followed Paramount’s decision to substantially improve its proposal terms.
Beyond raising its acquisition price, Paramount committed to a $7 billion regulatory termination fee. The company also accelerated its “ticking fee” timeline, agreeing to pay 25 cents per share quarterly if the transaction extends beyond September’s end, rather than waiting until year-end as originally proposed.
