High-Stakes Bidding War: Paramount Ups the Ante Against Netflix for Warner Bros

Paramount has increased its offer for Warner Bros, outbidding Netflix with a $31 per-share bid. Warner Bros considers this offer superior, putting Netflix on a tight four-day deadline to revise its proposal. The deal's outcome may reshape Hollywood's power dynamics and has prompted regulatory and political scrutiny.

In a dramatic turn of events, Warner Bros Discovery has acknowledged Paramount's revised $31 per-share offer as superior to its current agreement with Netflix. This announcement escalates the ongoing bidding war for the renowned Hollywood studio. Netflix now faces a four-business-day ultimatum to revise its bid or relinquish its pursuit.

Paramount's enhanced proposition is enticing, yet Netflix remains a formidable contender. With $9.03 billion in cash reserves, Netflix possesses the financial capability to strengthen its offer. The outcome hangs in the balance as both parties vie to acquire Warner Bros' coveted assets, including the film and TV studios and an extensive content library.

Warner Bros' strategic evaluation of the proposals also factors in the declining profitability of its cable channels, fueling complexities in assessing company valuations. As the industry awaits Netflix's response, the intricate dance between these entertainment giants underscores a pivotal moment in Hollywood's evolving landscape.

(With inputs from agencies.)