Paramount Reignites Bid War for Warner Bros Discovery

Warner Bros Discovery is considering a revised offer from Paramount Skydance after CEO David Ellison increased the bid to $31 per share. The deal includes enhanced terms and a higher termination fee, sparking speculation of a potentially superior deal compared to Netflix's current bid.

On Tuesday, Warner Bros Discovery reopened discussions with Paramount Skydance after Paramount's CEO, David Ellison, sweetened the company's acquisition bid to $31 per share. The revised proposal presents improved terms and financing, raising the prospect of a deal that could surpass Warner's existing agreement with Netflix.

Paramount reignited interest from Warner Bros by suggesting a more attractive cash offer, coupled with a hike in the termination fee to $7 billion should the acquisition fail regulatory scrutiny. Additionally, Paramount has pledged to compensate Warner shareholders with a quarterly dividend of 25 cents per share after September 30 if the deal remains incomplete.

Still in preliminary stages, the Warner board has not yet deemed the Paramount offer superior. Meanwhile, Netflix, with its $27.75 per share bid valuing Warner at $82.7 billion, has four days to restate its offer if Paramount's bid gains preference.

(With inputs from agencies.)