Paramount Skydance has increased its offer to acquire Warner Bros Discovery, potentially sidelining rival bidder Netflix in the contest for the media giant.
Warner Bros, which put itself up for sale last year, confirmed that Paramount has agreed to raise its bid by $1 per share. The company’s board said the revised offer “could reasonably be expected to lead to a superior proposal.”
The board added that it would engage in further discussions before deciding whether to abandon the agreement it reached with Netflix in December.
Under the terms of that December deal, Netflix agreed to acquire Warner Bros’ film and streaming divisions, including HBO, for $27.75 per share—valuing the transaction at approximately $82 billion, including debt. Warner Bros also said it would spin off its remaining assets, including traditional television networks and CNN, into a separate independent company.
Following Paramount’s revised offer, Netflix has four days to submit a counter-offer. The company has not yet commented on the latest development.
In a recent BBC interview conducted before Paramount’s increased bid was announced, Netflix co-chief executive Ted Sarandos declined to speculate on a potential bidding war, describing the negotiations as “part of the process.”
“We very much like the deal where we’re at right now. We’re very disciplined buyers and we always have been,” Sarandos said, adding that the situation was “a process of price discovery.”
Paramount Skydance, backed by tech billionaire Larry Ellison and led by his son David Ellison, has been actively pursuing Warner Bros since last year in a bid to strengthen its position in Hollywood. Although its initial offer proposed paying $30 per share to acquire the entire company, Warner Bros had previously rejected those advances.
The latest proposal raises the offer to $31 per share in cash, with additional payments if the deal’s completion is delayed. Paramount has also agreed to pay $7 billion if the deal collapses and to cover the $2.8 billion break-up fee Warner Bros would owe Netflix if it terminates the existing merger agreement.
Warner Bros said its board has not yet reached a final decision.
Both proposals have attracted scrutiny from US lawmakers over potential monopoly concerns and the broader impact on the entertainment industry. During a recent congressional hearing, Sarandos faced questions about possible price increases and the future of cinemas.
The Ellison family’s ties to the Trump administration have also drawn attention from Democratic lawmakers.
Warner Bros said it would continue discussions to determine whether a “superior proposal” can be reached. Analysts suggest the bidding could escalate further, with some estimating the final price could rise to as much as $33 per share.