Paramount Raises the Stakes with Bigger Offer for Warner Bros Acquisition
Paramount Skydance has submitted a higher offer to acquire Warner Bros., escalating one of the most closely watched battles in Hollywood. People familiar with the matter told Bloomberg that the new bid improves on Paramount’s previous $30-a-share all-cash proposal presented directly to Warner Bros. shareholders in December. The details of the updated offer have not been made public.
The previous bid raised concerns at Warner Bros., including questions about financing certainty. Paramount reportedly addressed some of those issues in its latest offer. The studio had agreed last year to sell its film and TV studios, along with HBO, to Netflix for $27.75 a share, a deal that also includes a spinoff of Warner Bros. cable networks like CNN and TNT.
Warner Bros. reopened discussions with Paramount for a seven-day window ending Monday. If the board considers Paramount’s new offer superior to the Netflix deal, Netflix would have four days to respond.
Paramount’s backing comes from Larry Ellison, Oracle’s billionaire co-founder, who is reportedly set to support more than $40 billion in equity from his family and other investors. Paramount also agreed to allow Warner Bros. to operate its business independently until the deal closes.
Paramount Skydance, formed last August after merging with David Ellison’s Skydance Media, sees acquiring Warner Bros. as a chance to rapidly become a major Hollywood powerhouse. Analysts say a Netflix victory, meanwhile, would solidify its position as one of the most dominant players in entertainment history.
Shares of Warner Bros. were little changed at $28.98 in after-hours trading, after a brief spike. Paramount rose 1.3%, while Netflix saw a slight gain.
The fight for Warner Bros., the century-old studio behind classics like Casablanca and Batman, as well as TV hits like Friends, is among the largest media deals in years. Industry watchers note that whichever company succeeds will have significant influence over Hollywood’s future.
The potential sale has also drawn attention from Hollywood and Washington, with concerns about media concentration and the impact on jobs and creative independence.
This bidding war highlights how much the entertainment landscape is changing. Paramount’s new offer shows it is serious about shaking up Hollywood, while Netflix’s current deal remains a major benchmark. It will be interesting to see which company ultimately takes control of this iconic studio.
What do you think of Paramount’s bold move to challenge Netflix for Warner Bros.? Share your thoughts in the comments.