Warner Bros. Discovery is reportedly evaluating whether to restart negotiations with Paramount Skydance after receiving an amended acquisition offer with more favorable terms.
Background of the Sale Talks
- In December 2025, Warner Bros. agreed to sell its film studio and HBO Max streaming service to Netflix for $27.75 per share.
- Paramount launched a hostile bid in the same month, offering $30 per share in an all-cash deal for Warner Bros.
Paramount's Sweetened Offer Terms
- Added a ticking fee of $0.25 per share per quarter for any delay in regulatory approval beyond December 31, 2026, valued at approximately $650 million per quarter.
- Committed to covering a $2.8 billion termination fee owed to Netflix if the Warner Bros.-Netflix deal is terminated.
- Agreed to eliminate $1.5 billion in potential debt refinancing costs.
Competitive Bidding Landscape
- Both Paramount and Netflix have publicly stated their willingness to raise bids to secure the Warner Bros. acquisition.
- Warner Bros. is now assessing whether Paramount's revised offer could result in a superior deal or prompt Netflix to enhance its terms.
Reporting and Sources
- The developments were reported by Bloomberg News on Sunday, citing unnamed sources familiar with the matter.
- Warner Bros.' board is involved in the deliberation process, as per the report.