The board of Warner Bros. Discovery (WBD) has confirmed that it is willing to evaluate the improved purchase offer presented by Paramount Skydance, after it raised its proposal to 31 dollars per share in cash, compared to the 30 dollars previously proposed.
According to the board, Paramount's revised offer “could reasonably result in a superior proposal” under the terms of the merger agreement that Warner had reached with Netflix —a preliminary agreement valued at approximately 82.7 billion dollars—, although it has not yet been definitively determined to be better than the transaction with Netflix.
Paramount's new proposal includes not only the increase in the share price, but also an additional daily payment for delays after September 2026 and compensation of 7 billion dollars in case regulatory issues prevent the operation, in addition to covering the termination fee that Warner would have to pay Netflix for breaking that agreement.
Although Warner continues recommending the agreement with Netflix —and has not withdrawn that recommendation—, the company has indicated that it will continue working with Paramount to determine if a “superior proposal” can be developed for shareholders. If this were considered, Netflix would have four business days to react with a revised counteroffer.
This move rekindles the bidding war between entertainment giants and marks one of the most intense chapters in the battle for control of one of Hollywood's most valuable studios.