Warner Bros. Discovery says it thinks Paramount's new bid could be superior to Netflix's offer
Business Insider
February 24, 2026
AI-Generated Deep Dive Summary
Warner Bros. Discovery (WBD) has received a new offer from Paramount that could potentially outshine Netflix's bid for the company. While WBD's board acknowledges that Paramount’s $31-per-share proposal, which includes acquiring all of WBD’s assets, “could reasonably be expected to lead to” a superior deal, they have not yet made a definitive decision. Netflix, on the other hand, has offered $27.75 per share for WBD's streaming and studio assets while excluding its cable channels. The outcome of this bidding war hinges on several factors, including regulatory approvals, potential synergies, and concerns about job losses if Paramount’s offer is accepted.
Paramount’s latest proposal includes a “ticking fee,” which would pay WBD shareholders $0.25 per share quarterly until the deal closes, starting in September 2023 instead of January 2027 as previously planned. This move aims to address some of the earlier concerns WBD had about Paramount’s offers, including issues related to financial guarantees and breakup fees. However, Netflix has positioned its deal as simpler and more favorable for Hollywood, emphasizing job creation in contrast to Paramount’s promise of $6 billion in cost savings.
The regulatory landscape and political implications also loom large over this deal. While President Trump initially expressed concerns about Netflix’s market dominance, he later stated that the Justice Department should handle the antitrust review. Meanwhile, Netflix co-CEO Ted Sarandos has downplayed any political angle, calling the acquisition “not a political deal.” If Netflix decides to sweeten its offer, WBD shareholders could benefit from a win-win situation, with both bidders competing to deliver the best terms.
Ultimately, this high-stakes bidding war highlights the strategic value of WBD’s assets, particularly its cable networks and studio divisions. The decision will impact not only WBD’s shareholders but also the broader entertainment industry, as it shapes the future of media consolidation and job markets in Hollywood.
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Originally published on Business Insider on 2/24/2026