Warner Bros. Discovery has dramatically shifted its stance in the high-stakes battle for Hollywood giant Paramount, now deeming Paramount’s latest takeover offer superior to its existing agreement with Netflix. This move marks a significant turn in the ongoing corporate drama.
In response, Netflix declined to raise its offer for Warner Bros, saying the deal is “no longer financially attractive.”
For months, the owner of HBO Max, DC Studios, and popular franchises like "Harry Potter" had publicly backed Netflix’s proposal. However, following an enhanced bid from Skydance-owned Paramount, which now offers $31 per share for the entire company alongside other revisions, Warner’s board declared on Thursday that the offer "constitutes a ‘company superior proposal.’"
Paramount CEO David Ellison expressed his satisfaction, stating: "We are pleased WBD’s Board has unanimously affirmed the superior value of our offer, which delivers to WBD shareholders superior value, certainty and speed to closing." This development could ignite a fresh bidding war for the entertainment powerhouse.
Netflix now faces a four-business-day deadline to either match Paramount’s revised offer or further amend its own proposal, which currently stands at $27.75 per share for Warner’s studio and streaming operations. Despite the board’s new assessment, Warner maintained on Thursday that Netflix's bid remains on the table, and that its board "has not withdrawn or modified its recommendation." The Associated Press sought comment from Netflix regarding the situation.
For Netflix, a combination with HBO Max would make it the biggest global streaming player, with roughly half a billion subscribers.
Netflix co-CEO Ted Sarandos has voiced confidence in winning approval, saying the company's bid would be better for Hollywood as it would avoid job cuts in an industry already hit by fewer productions and uneven box-office returns.
The streaming pioneer said during deal talks the potential combination of its streaming service with HBO Max would benefit consumers by lowering the cost of a bundled offering.
But its argument that it needs Warner Bros to compete with YouTube, America's most-watched TV distributor, is likely to face pushback from the Department of Justice.
