The battle between Paramount and Netflix over Warner Bros. isn’t over yet — not by a long shot.
According to a new report from Bloomberg, Warner Bros. Discovery’s board is now actively weighing whether to reopen sale negotiations with Paramount Skydance after receiving an amended offer that could rival — or even surpass — its existing agreement with Netflix.
While no decision has been finalized, the mere consideration of Paramount’s revised bid signals that the bidding war many thought was settled may be heading for a second round.
Paramount Amended Offer Forces Warner Bros. To Reconsider
Per Bloomberg’s reporting, Paramount recently submitted updated deal terms designed to address concerns previously raised by Warner Bros. leadership.
People familiar with the matter told the outlet that Paramount’s new proposal includes several financial concessions aimed at making its bid more competitive — and less risky — for Warner shareholders.
David Ellison in an interview with Bloomberg – YouTube, Bloomberg Podcasts
Among the key revisions:
- Paramount would cover the $2.8 billion breakup fee Warner Bros. would owe Netflix if it exits the existing agreement
- The company is offering to backstop Warner’s debt refinancing
- Paramount is also proposing shareholder compensation if the deal fails to close by year’s end
Sources close to the board indicated these structural changes are significant enough that Warner leadership is now debating whether Paramount’s path could produce a superior overall deal.
However, Bloomberg notes Warner Bros. still maintains a binding agreement with Netflix, and no formal shift has occurred.
Netflix Deal Still Binding — But Pressure Is Mounting
Warner Bros. previously agreed to sell its studio assets and HBO Max streaming business to Netflix in a deal valued at $27.75 per share.
That agreement remains in place.
But Paramount has continued appealing directly to shareholders with a competing $30-per-share tender offer, while simultaneously lobbying regulators in support of its acquisition case.
A graphic showing the Netflix and Warner Bros. Logos – Netflix
Bloomberg reports that shareholder pressure has played a role in reopening internal discussions, with some investors urging the board to at least evaluate whether Paramount’s structure offers stronger long-term value.
Activist firms — including Pentwater Capital Management and Ancora Holdings Group — have publicly supported engagement with Paramount, though Bloomberg notes that only a small percentage of shares have formally been tendered so far.
Bidding War 2.0 Could Be On The Table
If Warner Bros. does re-engage Paramount, the process is contractually structured to trigger a competitive escalation.
Bloomberg reports that Warner would first need to notify Netflix, which retains the right to match or exceed any superior proposal.
WBD CEO David Zaslav Speaks at a New York Times event – YouTube, New York Times Events
Sources familiar with the negotiations suggest both Paramount and Netflix are prepared to raise their bids if necessary.
Paramount CEO David Ellison has previously indicated his company’s current offer is not its final one, while Netflix leadership has likewise signaled willingness to improve terms if a challenge emerges.
In short: neither side appears ready to walk away.
Investor Reaction Signals Deal Fatigue
The prolonged acquisition fight has already rattled markets.
Bloomberg notes that Netflix shares have fallen more than 40% from their June peak, reflecting investor anxiety surrounding the cost and complexity of absorbing Warner Bros.’ massive studio and streaming footprint.
Still, some institutional investors believe Paramount’s revised structure shows growing financial creativity — even if the headline price hasn’t yet increased.
David Ellison talks to Bloomberg – YouTube, Bloomberg Podcasts
Chris Marangi of Gabelli Funds framed the shift as: “Ways to be creative about structuring a deal.”
Marangi added that shareholders are watching closely to see whether Paramount will go further to secure the asset.
“Like the Warner Bros. board, I want to see a sweetened offer,” he said.
Paramount Started The Fight — And Isn’t Letting Go
Bloomberg’s report also reiterates that Paramount originally triggered the takeover battle with an unsolicited offer last year.
The company raised its bid multiple times during that process but ultimately lost out to Netflix’s agreement.
Sonic, Knuckles, and Tails from the Sonic The Hedgehog 3 Trailer – Paramount Pictures
Since then, Paramount leadership has continued lobbying shareholders and regulators, maintaining that its combination with Warner Bros. represents the stronger long-term strategic fit.
The latest amended proposal appears to be the company’s most aggressive attempt yet to reopen negotiations.
What Happens Next
For now, Warner Bros. remains in a holding pattern.
The board is weighing whether Paramount’s revised terms justify formally reopening talks — a move that would instantly reignite the bidding war and potentially drive the final sale price higher.
If that happens, Netflix would have the opportunity to counter.
Warner Bros Discovery Logo
If it doesn’t, the current Netflix deal proceeds toward shareholder approval.
Either way, the Paramount Warner Bros. saga is far from settled — and Wall Street, Hollywood, and Silicon Valley are all watching to see which media giant ultimately wins control of one of the industry’s most valuable content empires.
Do you think Paramount will walk away with Warner Bros.? Sound off in the comments and let us know!
The investors are spooked by regulatory uncertainty. The DOJ is ready to pounce the moment Netflix and WBD sign the deal, which would send WBD’s stock price spiraling and PSKY could renew their offer for a mere half of what it is now. There’s also uncertainty about the spin-off of WBD’s cable assets being at all profitable, given how badly Vantage crashed and burned earlier this year. Then there’s the stock market uncertainty thanks to China crashing out and the LLM Bubble starting to burst.
It remains to be seen which way the investors will go. But a growing number of them have said they’d sooner take Paramount’s offer because it offers certainty of what they’ll get. Not enough to guarantee anything but it is making Zaslav and Sarandos sweat.
[…] $30/Share Bid ∟Netflix Switches To All-Cash Bid For Warner Bros. ∟Warner Bros. Board Considers Reopening Talks with Paramount — Is The Netflix Deal in Danger? ∟Paramount Sweetens Hostile Takeover Bid for Warner Bros. Discovery — WBD […]