Streaming Giants Clash Over Warner Bros: Paramount Outbids Netflix in High-Stakes Battle

Paramount Skydance has outbid Netflix with a revised $31-per-share offer for Warner Bros Discovery, escalating the battle for the Hollywood studio. Netflix has four business days to respond. The deal depends on regulatory approval and the value of Discovery Global. A decision could shape Hollywood’s power structure.

Paramount Skydance has made a bold move, offering $31 a share for Warner Bros Discovery, surpassing Netflix's previous bid. The streaming giant now has four business days to counter this higher offer or step aside in this high-stakes acquisition battle. The deal's outcome could significantly alter Hollywood's landscape.

The intense competition follows Netflix's previous agreement to purchase Warner Bros' streaming and studio assets for $27.75 a share, which also included plans for a spinoff of cable assets. The ultimate success of Paramount's bid hinges on regulatory approval and the valuation of Discovery Global, whose assets' worth remains debatable.

With $9.03 billion in cash reserves, Netflix has the financial prowess to enhance its proposal. Paramount argues its bid will face fewer regulatory hurdles and holds a strategic edge. The situation intensifies as stakeholders, including hedge funds and investors, apply pressure on Warner Bros to consider the new offer seriously.

(With inputs from agencies.)