Warner Bros. Discovery says its reviewing Paramount’s new bid

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Warner Bros. Discovery announced Tuesday that it’s considering a new offer from Paramount and Skydance. This is the newest development in the ongoing competition to acquire a major Hollywood asset.

The company declined to share specifics about Paramount’s offer. However, Paramount has confirmed it submitted an updated bid.

Warner confirmed that Paramount had made a new offer to purchase all of the company’s stock, and the board is currently reviewing it with the help of financial and legal experts.

“We will update our shareholders following the Board’s review,” Warner said.

Paramount, with backing from Larry Ellison, was under pressure to increase its offer for the company behind CNN, HBO, TBS, and Warner Bros. studios by late Monday. Last week, Netflix – which initially won the auction – gave Warner Bros. Discovery a week to see if Paramount could offer a higher price.

Warner instructed Paramount to present its “best and final” offer.

If Warner Bros. Discovery changes its mind and accepts Paramount’s offer, Netflix has the right to match it.

This decision follows Warner’s board’s earlier unanimous agreement to sell HBO and its film and television studio – including popular franchises like Superman, Harry Potter, Scooby-Doo, “Game of Thrones,” and “The Big Bang Theory” – to Netflix for $27.75 per share. The deal was made almost three months ago.

Hollywood Inc.

Larry Ellison, a major figure in the tech world, tried to buy Warner Bros. Discovery, but Netflix won the deal. This has led to a potential legal battle that could significantly impact the future of the entertainment industry.

The agreement with Netflix is worth $82.7 billion, but it doesn’t cover Warner’s traditional cable networks like CNN, TBS, and HGTV.

Those channels are slated to be spun off to a new company later this year.

Paramount, led by David Ellison, has consistently argued that its offer to buy all of Warner Bros. Discovery – including its cable channels – would result in a bigger payout for investors. The company, which has a good relationship with President Trump, also claims it has a better chance of getting approval from U.S. regulators than Netflix.

Despite concerns, Warner Bros.’ board chose to move forward with Netflix’s offer, believing Netflix had more reliable funding.

I was relieved to see Warner’s statement today confirming that the deal with Netflix is still on track! They clearly stated that their board still supports and recommends going forward with it, which is great news.

Last week, Warner Bros. Discovery informed Paramount that they anticipated billionaire Larry Ellison would contribute additional funding to the agreement.

Paramount announced that the billionaire had committed over $41 billion in funding to support the more than $108 billion acquisition.

Originally, the Ellison family intended to invest around $12 billion. An additional $24 billion was anticipated from royal families in Saudi Arabia, Qatar, and the United Arab Emirates (Abu Dhabi).

Hollywood Inc.

This weekend, President Trump warned Netflix that they would face repercussions if they didn’t remove Susan Rice from their board of directors.

Recently, Paramount agreed to pay a $2.8 billion fee if Warner cancels its agreement with Netflix. Paramount also indicated it’s willing to raise its offer to at least $31 per share.

This decision follows growing political attention surrounding the major agreement that could significantly change the film industry.

The Justice Department is looking into whether a Netflix acquisition, or Paramount’s competing offer, would reduce competition in the market.

Republican lawmakers have been critical of the Netflix deal, saying it would blunt competition.

President Trump stated he wouldn’t interfere with the investigation, but over the weekend he threatened Netflix. He posted on social media demanding they remove Susan Rice, a former official from the Obama and Biden administrations who serves on their board, or face repercussions.

Warner Bros. Discovery is working with financial advisors from Allen & Company, J.P. Morgan, and Evercore, and receiving legal counsel from the law firms Wachtell Lipton and Debevoise & Plimpton.

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2026-02-24 18:01