Bidding War Intensifies for Warner Bros. Discovery

Paramount ups its bid for Warner Bros. Discovery as a key negotiation window closes, challenging Netflix's signed deal. A complex regulatory and financial battle unfolds.

The contest for control of Warner Bros. Discovery has escalated into a high-stakes corporate showdown. With a key negotiation window closing, rival bids from Paramount and Netflix are creating intense pressure, setting the stage for a complex regulatory and financial battle.

Paramount Ups Its Offer as Deadline Looms

The latest surge in activity was triggered by the expiration of a seven-day negotiation period on Monday at 11:59 PM Eastern Time. Reports indicate that Paramount Global has increased its per-share bid above the previously discussed figure of $30. While the exact new price remains unconfirmed, a recent SEC filing from Warner Bros. Discovery suggested Paramount was prepared to offer at least $31 per share or more.

This move by Paramount was widely anticipated. The Warner board had previously rejected earlier proposals, including an improved offer from February 10th, deeming them insufficient to qualify as a "superior proposal." An official statement from Paramount is expected before U.S. markets open on Tuesday, according to industry publication Deadline.

Netflix Holds a Strategic Advantage with Signed Deal

Netflix currently holds a signed agreement to acquire Warner's studio and streaming assets, including HBO Max, for $27.75 per share in cash. A critical component of this deal is Netflix's matching rights, which allow it to counter any superior competing offer. Financial analysts, citing Reuters, suggest Netflix possesses the necessary resources to increase its bid if required.

Paramount's proposal, in contrast, aims to acquire the entire company. This would include cable networks such as CNN, TBS, and HGTV, which are excluded from the Netflix agreement. Under the Netflix plan, these linear assets would be spun off into a separate entity tentatively named "Discovery Global." To enhance its offer's attractiveness, Paramount's package is reported to include covering the $2.8 billion breakup fee associated with the Netflix deal, costs for debt refinancing, and a quarterly "ticking fee" of $0.25 per share.

Regulatory Scrutiny and Corporate Calendars Add Complexity

Both potential transactions face significant regulatory hurdles. Multiple reports confirm that the U.S. Department of Justice (DOJ) has initiated an antitrust review of the Netflix deal, citing concerns that a merger of major streaming platforms could concentrate excessive market power. Netflix has acknowledged that this regulatory process could extend for up to 18 months.

The corporate calendar adds another layer of timing pressure. Warner Bros. Discovery is scheduled to release its fourth-quarter and full-year 2025 financial results before the market opens on Thursday, February 26th. Paramount will report its earnings a day earlier, on Wednesday. Management discussions on both earnings calls are likely to address the structure and rationale behind the competing acquisition proposals.

The company's share price has shown recent stability. In today's trading, the stock is quoted at €24.36, representing a modest decline of -0.69%.

Key dates are fast approaching. Deadline reports that Paramount's tender offer is set to expire on March 3rd, while the shareholder vote on the Netflix deal is scheduled for March 20th. The upcoming earnings release on Thursday will provide Warner management with its first major public platform to contextualize these recent developments for investors.