Investors are splitting into camps as the takeover fight for Warner Bros. Discovery $WBD ( ▲ 1.96% ) heats up again, with analysts now saying another bidding war between Paramount and Netflix $NFLX ( ▲ 0.64% ) is all but certain.
The saga escalated after Paramount Skydance $PSKY ( ▲ 0.15% ) launched a $30-per-share hostile bid on Monday, taking its offer directly to Warner shareholders. That move disrupted what looked like a done deal last week, when Netflix and Warner agreed to an $83 billion transaction for WBD’s studio and streaming assets.
Netflix’s offer still faces political resistance, including pushback from the Trump administration. Paramount’s bid, however, may not be high enough to pull shareholders away from the Netflix deal, even though some investors are already signaling interest. Both sides have communicated they are willing to raise their bids, according to Bloomberg.
Bloomberg Intelligence analysts said Wednesday that a renewed bidding war now appears “inevitable” and that Paramount could “justify going as high as $35” per share. That number matters. The New York Post reports that WBD CEO David Zaslav has privately indicated a $35 offer could “upend” Netflix’s deal.
If Warner ultimately walks away from Netflix and chooses Paramount instead, it would owe Netflix a $2.8 billion breakup fee. Netflix’s penalty would be even larger at $5.8 billion.
The battle for Warner Bros. is shaping up to be one of the most expensive streaming era showdowns yet.