Warner Bros Discovery weighs reopening talks with Paramount Skydance after a fresh offer from Paramount sparks new bidding chatter
Warner Bros Discovery (WBD) is considering the possibility of restarting merger discussions with Paramount Skydance, a move that could trigger another bidding war with Netflix over the Hollywood powerhouse’s film and television assets. Board members are weighing whether to engage Paramount directly again, as Paramount pursues a hostile cash takeover valued at about $108.4 billion and aims to persuade Paramount’s shareholders to derail WBD’s existing agreement with Netflix, according to Bloomberg.
Paramount recently indicated it would cover a $2.8 billion breakup fee owed to Netflix if WBD withdraws from the deal. It also proposed backing multibillion-dollar refinancing to remove roughly $1.5 billion in costs and added a quarterly ticking fee of around $650 million in cash if the deal isn’t closed by year’s end. In parallel, Paramount has strengthened its political lobbying capacity by naming Rene Augustine, a former Trump administration attorney, as senior vice-president of global public policy.
David Ellison, Paramount’s chairman and CEO, framed the company’s persistent push for WBD as evidence of a robust, unwavering commitment to delivering full value to WBD’s shareholders. WBD countered that it was reviewing Paramount’s amended offer and that pressure from smaller investors—Pentwater Capital Management and Ancora Holdings Group—could push the company to engage with the rival bidder.
Despite the pressure, current data shows less than 2% of WBD’s shareholders have aligned with Paramount’s hostile bid. WBD has already extended the deadline twice, with the latest extension pushing the date to February 20. If WBD chooses to open formal talks with Paramount, it would first notify Netflix, a move that could prompt Netflix to further sweeten its own offer.
Earlier this year, Netflix intensified its bid for WBD studios and streaming assets by converting its proposal into an all-cash deal. The Netflix bid targets prized franchises and properties such as Warner Bros. studio titles (including franchises like Harry Potter, Superman, and Batman) and its HBO platform, known for shows like Game of Thrones, The White Lotus, and Succession. Netflix, however, has indicated it does not intend to acquire WBD’s global networks division, which includes CNN, Cartoon Network, and Discovery Channel, plans that would see a spin-off with investor participation.
Paramount’s strategy, in contrast, envisions taking control of the entire media group. Bloomberg reports that WBD’s board is debating whether Paramount offers a superior outcome, though a formal response has yet to be determined. Separately, WBD had announced intentions to convene a special shareholders’ meeting in April to vote on the Netflix merger.
