Paramount Outbids Netflix With $31-Per-Share Offer for Warner Bros. Discovery

Paramount has submitted a revised $31-per-share offer to acquire Warner Bros. Discovery, escalating the competition for control of a media group that includes HBO, CNN and one of Hollywood's largest film and television studios. The new proposal surpasses Netflix's previously announced $27.75-per-share agreement and immediately places pressure on Warner's board to reassess its recommendation to shareholders. According to people familiar with the negotiations, Paramount's offer includes both cash and stock and is structured to provide a clear premium over Netflix's terms. The move intensifies a bidding contest that has unfolded amid financial restructuring at Warner Bros. Discovery and heightened consolidation across the global entertainment industry.

Netflix's earlier agreement valued Warner Bros. Discovery at approximately $27.75 per share in equity value as part of a broader transaction estimated at more than $80 billion in enterprise value. The proposed deal focused primarily on Warner's studio operations and streaming assets, including HBO and its direct-to-consumer platform, while certain linear television assets were expected to be separated. Netflix positioned the acquisition as a strategic expansion of its content library and global reach. Warner's board had endorsed the Netflix transaction, citing its scale and industrial logic, before Paramount's higher $31-per-share bid introduced a materially improved financial alternative for shareholders.

The takeover battle has unfolded against a politically charged backdrop. Donald Trump publicly criticized Netflix and called for changes to its board composition, drawing national attention to the pending transaction. His remarks included demands that Netflix remove board member Susan Rice, injecting political rhetoric into what had been framed as a commercial negotiation. The comments fueled speculation that regulatory scrutiny of the media sector could intersect with partisan debates, particularly given that CNN — a frequent target of Trump's criticism — is part of Warner Bros. Discovery's portfolio and would fall under new ownership if the acquisition proceeds.

Netflix co-CEO Ted Sarandos addressed the controversy directly in an interview, rejecting the idea that the deal was politically motivated.

«This is a business deal. It's not a political deal. This deal is run by the Department of Justice in the U.S. and regulators throughout Europe and around the world,» Sarandos said when asked about Trump's comments.

Referring to Trump's social media posts, he added, «He likes to do a lot of things on social media.»

Sarandos' remarks were aimed at reinforcing that the acquisition process is subject to formal regulatory review and grounded in financial and strategic considerations rather than political pressure.

Paramount executives have likewise emphasized that their $31-per-share offer reflects valuation discipline and long-term growth strategy. While the company has not publicly detailed every element of the revised proposal, analysts note that Paramount's higher bid provides an immediate premium to Warner shareholders and may compel Netflix to improve its terms if it wishes to remain competitive.

Warner Bros. Discovery's board is required to evaluate whether Paramount's proposal constitutes a superior offer under the terms of its existing agreement with Netflix, a determination that could trigger additional negotiation windows and potential counterbids.

Attention now turns to whether Netflix will respond with a counteroffer or allow Paramount's enhanced bid to stand. Under the current merger framework, Warner could face a breakup fee if it abandons the Netflix agreement, though such fees are common in competitive acquisition scenarios. Investors are closely monitoring signals from both bidders as the process unfolds. If Paramount's $31-per-share proposal is accepted, it would reshape the competitive balance in streaming and legacy media.

If Netflix counters, the bidding war could escalate further, driving up the valuation of one of the industry's most sought-after portfolios.

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