High-Stakes Battle for Hollywood's Crown Jewel

Warner Bros Discovery is at the center of a bidding war between Paramount Skydance and Netflix, with offers reaching $31 per share. The deal will reshape Hollywood's structure, involving content assets like Batman and Harry Potter, with each suitor presenting unique strengths and challenges in their bids.

Warner Bros Discovery found itself in the middle of a fierce bidding war on Tuesday as Paramount Skydance increased its offer to $31 per share, challenging Netflix's position as the favored suitor. The intensifying competition revolves around the studio behind Hollywood giants like Batman and Harry Potter.

Paramount lured Warner's board back into discussions last week with the prospect of an improved cash deal and increased termination fee, now standing at $7 billion, should regulatory hurdles arise. Additionally, Paramount committed to offering Warner shareholders quarterly payments if the deal is delayed beyond September 30.

The battle involves different asset sets, with Paramount targeting the whole company and Netflix eyeing specific segments. Analyst opinions vary on which offer is superior, citing potential shareholder lawsuits due to the subjective nature of the bids. The high-stakes outcome will reconfigure Hollywood's landscape significantly.

(With inputs from agencies.)