It looks like Warner Bros. has been tempted by Paramount’s offer of purchase. Bloomberg News reported on Sunday, citing people with knowledge of the matter that Warner Bros Discovery is considering reopening sale talks with rival Hollywood studio Paramount Skydance after receiving its hostile suitor’s most recent amended offer.
Paramount said it has offered shareholders a 25-cent-per-share quarterly “ticking fee” (about $650 million) in cash starting in 2027 until closing and agreed to cover Warner Bros’ $2.8 billion breakup fee to Netflix.
Warner Bros. Discovery (WBD) previously agreed to be acquired by Netflix, but Paramount Skydance has pursued a hostile takeover with an all-cash bid valuing the company at approximately $108.4 billion (around $30 per share). The WBD board had previously rejected Paramount’s offer, stating it did not provide sufficient value compared with the Netflix deal.
READ: Paramount raises stakes in Warner Bros. deal, offers to pay Netflix exit fee (
Activist investor Ancora Holdings, which has built a nearly $200 million stake, last week said it plans to oppose the Netflix deal, arguing the board did not sufficiently engage with Paramount over its rival bid, which includes cable assets like CNN and TNT.
It is possible that WBD could engage in further discussions with Paramount, though no final decision has been made and the company remains under its existing Netflix agreement. The situation remains fluid, and analysts suggest that any change in direction would depend on shareholder reaction and regulatory considerations.
The ongoing uncertainty surrounding Warner Bros. Discovery’s potential reconsideration of Paramount Skydance’s offer introduces significant implications for Netflix. Even though Netflix currently holds an agreed-upon acquisition deal, the mere possibility of WBD reopening talks with a rival bidder creates an environment of unpredictability. For Netflix, this could affect strategic planning, including integration timelines, content distribution strategies, and projected synergies from the acquisition. The market may respond to the uncertainty with volatility, as investors assess the likelihood of a competing bid supposedly altering the previously agreed terms.
READ: Netflix revises bid for Warner Bros. Discovery to all-cash deal (
From a broader competitive standpoint, Netflix could face potential delays or renegotiations in its deal structure. This may also prompt the streaming giant to evaluate contingency plans, including legal strategies or shareholder engagement, to safeguard the transaction. Additionally, the situation underscores the risk of large-scale media consolidation, where multiple suitors with deep financial resources can influence corporate decisions even after formal agreements are in place.
Netflix may also need to consider the reputational and operational effects of a drawn-out acquisition process. Stakeholders, including content creators, advertisers, and subscribers, could respond to prolonged uncertainty, potentially affecting subscriber growth or content investments.
Ultimately, while Netflix currently retains contractual rights under the WBD agreement, the emergence of a credible rival offer highlights the fluidity of high-stakes media mergers. It serves as a reminder that even finalized deals can face challenges when shareholder interests, market dynamics, and regulatory scrutiny intersect, requiring agility and careful strategic management.