Paramount Versus Netflix: The Hollywood Studio Bidding War Heats Up

Warner Bros Discovery's potential deal with Paramount at $31-a-share has been deemed superior to its existing arrangement with Netflix. The announcement may conclude the bidding war for Warner Bros. Netflix has four days to propose changes or be outbid. Estimates and terms continue to influence the decision.

In a blockbuster move, Warner Bros Discovery has deemed Paramount's $31-a-share offer superior to its ongoing arrangement with Netflix, reigniting the high-stakes battle for Hollywood's coveted Warner Bros studio. Netflix, which had previously granted a waiver to explore offers, now faces a four-business-day deadline to respond or step aside.

The competition reached a critical point when Paramount raised its earlier bid, promising higher value and quicker closure for Warner Bros shareholders. Netflix initially proposed a $27.75-a-share deal, eyeing substantial shareholder returns through a Warner Bros cable assets spinoff.

Financing details underscore the ambition behind the bids. Larry Ellison's Ellison Trust is backing $45.7 billion in equity for Paramount, which also secured $57.5 billion in debt financing commitments. With $9.03 billion in cash, Netflix holds ample financial power to counter the offer. The outcome could reshape Hollywood's landscape, granting ownership of Warner Bros' remarkable content library and franchise rights.

(With inputs from agencies.)