Paramount Skydance has raised its bid for Warner Bros Discovery, intensifying the battle to acquire one of Hollywood's most valuable media assets.
The new offer, which improves on Paramount's previous $108.4 billion proposal, is designed to address concerns over financing and challenges Netflix faces in competing for the studio, a source told Reuters on Monday.
The bidding war centers on iconic franchises like "Harry Potter" and "Game of Thrones," and the winner will gain a major foothold in the global streaming market.
Netflix's current offer stands at $82.7 billion, or $27.75 per share, and the company has the option to match Paramount's latest bid.
Paramount's efforts are backed by Oracle billionaire Larry Ellison, adding significant financial muscle to the challenge.
Paramount was asked to submit a "best and final offer" after Warner Bros initially rejected an enhanced bid that included covering Netflix's $2.8 billion termination fee and a 25-cent quarterly "ticking fee" per share to compensate Warner Bros shareholders for delays in closing a deal.
Warner Bros gave Paramount a seven-day deadline, until February 23, to submit a revised proposal.
Paramount submits higher offer for Warner Bros Discovery in bid to block Netflix, source sayshttps://t.co/A16N3mNAeS
— Economic Times (@EconomicTimes) February 24, 2026
Warner Bros Plans Cable Spinoff Amid Bidding War
Analysts from MoffettNathanson suggested that a $34-per-share offer from Paramount could end the bidding war and settle questions about Warner Bros Discovery's value.
Warner Bros plans to spin off cable assets, including CNN and HGTV, into Discovery Global, which the company estimates could add $1.33 to $6.86 per share, BT reported.
Netflix argues this spinoff increases shareholder value, while Paramount contends the cable assets are effectively worthless.
The bidding process has drawn activist investor pressure. Ancora Capital, which holds roughly $200 million in Warner Bros shares, criticized the company for not fully engaging with Paramount.
Ancora warned that shareholders could vote against the Netflix deal if Paramount was excluded from negotiations.
Shares of Paramount rose 1.3% to $10.70 in after-hours trading following news of the revised offer.
Warner Bros shareholders are set to vote on Netflix's offer on March 20, a decision that could shape the future of the studio.
Paramount has already received foreign-investment clearance in Germany and is in discussions with US, EU, and UK regulators.
Originally published on vcpost.com
