David Ellison’s Paramount Skydance has submitted a revised proposal for Warner Bros. Discovery that the company’s board says could lead to a superior deal compared to the rival offer from Netflix.
Paramount is now offering $31 per share for all of WBD, including its cable networks such as CNN and TruTV, an increase from its prior $30 per share bid. In a statement to shareholders Tuesday, WBD’s board said the revised offer “could reasonably be expected” to result in a better proposal than Netflix’s current bid.
Netflix has offered $27.75 per share for WBD’s streaming and studio assets only and has no interest in acquiring its cable channels. If WBD ultimately determines Paramount’s proposal is superior, Netflix would have four days to submit a higher offer.
Earlier Paramount proposals had drawn skepticism from WBD’s board, which raised concerns about financing commitments and Paramount’s initial reluctance to cover certain costs, including a potential breakup fee owed to Netflix. Paramount addressed those issues by securing a guarantee from billionaire Larry Ellison, father of Paramount’s CEO, and agreeing to reimburse WBD for any payout to Netflix if the board changes course.
The updated bid also includes a “ticking fee” that would pay WBD shareholders $0.25 per share for each quarter the deal remains unclosed beginning September 30. Under the prior structure, that payment would not have begun until January 2027.
