Paramount $PSKY ( ▼ 2.3% ) is back at the negotiating table with a sweeter offer for Warner Bros. Discovery $WBD ( ▲ 0.55% ) , bumping its bid to $31 per share after weeks of rejection. The WBD board confirmed it received the revised proposal and will review whether it beats the company’s existing merger agreement with Netflix $NFLX ( ▲ 0.05% ) .
The new bid comes after a seven-day discussion window between the companies, signaling Paramount isn’t ready to concede the media mega-deal race just yet.
A bidding war with real teeth
Warner Bros. Discovery said the updated offer “could reasonably be expected” to become a superior proposal compared with its Netflix deal, though no final determination has been made. In the meantime, the Netflix agreement remains active, and the board still recommends it.
If Paramount’s proposal is deemed better, Netflix will have four business days to respond with a higher bid, match the terms, or walk away entirely. Analysts say Netflix has the financial firepower to counter, but may bow out if the price climbs much above $32 per share.
Sweeteners, fees, and financial gymnastics
Paramount’s revised package isn’t just about price. The offer includes a $0.25 per-share quarterly “ticking fee” starting after September 30 and a hefty $7 billion termination fee if regulators ultimately block the deal.
Switching from Netflix to Paramount wouldn’t be cheap for WBD either. The company would owe Netflix a $2.8 billion breakup fee, though Paramount has indicated it would cover that cost.
Prediction markets pick a frontrunner
The latest move has shifted expectations among traders betting on the outcome. Prediction markets now give Paramount a narrow lead over Netflix in the race to acquire Warner Bros. Discovery.
Still, with multiple escape clauses, counter-offer windows, and regulatory hurdles ahead, this entertainment consolidation saga is far from over.