Warner Bros. Discovery has announced that the revised takeover proposal from Paramount Skydance could potentially lead to a “Company Superior Proposal” compared with its existing merger agreement with Netflix.
The Warner Bros. board of directors has not yet determined whether the updated offer is superior to the Netflix merger, but discussions with Paramount Skydance will continue. The current agreement with Netflix remains in effect, and the board has not withdrawn or modified its recommendation in favor of the Netflix transaction.
Paramount Skydance’s revised proposal includes a cash offer of $31 per share, along with a quarterly ticking fee of $0.25 per share beginning after September 30, 2026.
The bid also features a $7 billion regulatory termination fee, coverage of the $2.8 billion breakup fee payable to Netflix should the existing agreement be terminated, and an additional equity commitment to support financing requirements.
Netflix’s standing $82.7 billion all-cash deal values Warner Bros. at $27.75 per share. Analysts suggest that a bid in the range of $34 per share could decisively bring the contest to a close.
The process has evolved into a high-profile bidding war over a premium content portfolio that includes globally recognized franchises such as Harry Potter and Game of Thrones.
A shareholder vote scheduled for March 20 is expected to be pivotal in determining the company’s future direction. Meanwhile, regulatory scrutiny from U.S. and European competition authorities is likely to play a decisive role in the outcome of any potential merger.
