Bidding War Intensifies for Control of Warner Bros. Discovery

Paramount Skydance ups its Warner Bros. Discovery bid to $31/share, offering a $7B break-up fee and covering a $2.8B Netflix penalty, jeopardizing the existing Netflix acquisition agreement.

The battle for the future of media giant Warner Bros. Discovery has entered a critical new phase. A previously agreed acquisition deal with Netflix is now under serious threat from a substantially improved rival bid submitted by Paramount Skydance. The company's board has indicated this new proposal could overturn the existing arrangement, potentially upending the planned sale process just as it nears completion.

Paramount Ups the Ante with Enhanced Terms

In a decisive move to secure the deal, Paramount Skydance has officially increased its all-cash offer to $31.00 per share, up from its previous bid of $30.00. A significant feature of the revised proposal is a $7 billion break-up fee, strategically included to address management's concerns regarding potential regulatory obstacles.

A crucial financial component of the new package is Paramount's commitment to cover the $2.8 billion termination penalty Warner Bros. Discovery would owe for walking away from its existing agreement with Netflix. The total estimated value of this full-company takeover now stands at approximately $108.4 billion. Market reaction to the ongoing speculation has been positive, with the stock trading at €24.76, hovering just below its 52-week high of €25.55.

Netflix Faces Pressure to Counter-Bid

This development places the standing agreement with Netflix in jeopardy. The streaming leader had offered $27.75 per share, but with a more complex structure focused specifically on acquiring the studio and streaming divisions, requiring the spin-off of the linear TV assets. That transaction is currently under review by the U.S. Department of Justice for potential antitrust issues.

Should the Warner Bros. Discovery board formally designate Paramount's offer as "superior," Netflix would be granted a mere four-day window to submit a counteroffer. This injects significant uncertainty into the timeline, especially given that a shareholder meeting to vote on the Netflix deal is already firmly scheduled for March 20, 2026.

Core Business Operations Continue Unabated

Despite the high-stakes corporate tug-of-war, the company continues to advance its strategic expansion. The launch of its proprietary streaming platform in twelve new Asia-Pacific markets, including Fiji and Samoa, is scheduled for March 26, 2026. On the content front, the studio is relying on its proven successes; the premiere for the third season of the hit series "Euphoria" is set for April 13.

The weeks leading to the March 20 shareholder meeting are now decisive. Investors should prepare for a near-term resolution, choosing between a corporate breakup orchestrated by Netflix or a complete sale to Paramount. The board's assessment of the regulatory risks attached to each proposal will likely be the critical factor determining the final outcome.