Paramount Battles Netflix with Higher Bid to Snag Warner Bros

Paramount Skydance has upped its bid to buy Warner Bros. Discovery, escalating the ongoing battle for control of one of Hollywood’s most famous studios, according to sources familiar with the matter.

The new offer improves on Paramount’s earlier $30-a-share all-cash proposal made directly to Warner Bros. shareholders in December, and it addresses some of the concerns Warner Bros. had with previous bids, including financing certainty. The sources spoke on condition of anonymity because the details are not public.

In December, Warner Bros. had agreed to sell its film and TV studios and HBO business to Netflix for $27.75 a share. That deal would also spin off cable networks like CNN and TNT. Warner Bros. recently reopened talks with Paramount for a seven-day window, which ended Monday. If the board decides Paramount’s new offer is better than the Netflix deal, Netflix would have four days to respond.

Paramount has said Oracle co-founder Larry Ellison will back more than $40 billion in equity from his family and other investors to support the acquisition. Paramount has also agreed to let Warner Bros. continue running its business as it sees fit until a deal closes.

Formed in August through a combination with David Ellison’s Skydance Media, Paramount Skydance sees buying Warner Bros. as a chance to become a major Hollywood powerhouse. For Netflix, winning the studio would mark a major milestone in its rise as a leading entertainment player.

Shares of Warner Bros. were largely unchanged at $28.98 in extended trading after briefly rising. Paramount rose 1.3%, while Netflix saw a slight increase.

The battle for Warner Bros., the studio behind classics like Casablanca and Batman and popular TV shows like Friends, is one of the biggest media deals in recent years. Whichever company succeeds will have significant influence over the entertainment industry.

The potential sale has also sparked debate from Hollywood to Washington. Lawmakers, filmmakers, and others have expressed concern over media consolidation and how a merger could affect jobs.

This acquisition battle shows how much the media landscape is changing. Paramount’s aggressive bid could reshape Hollywood, but it also raises questions about concentration in the industry. What do you think about Paramount’s new offer? Could Netflix win, or is Warner Bros. heading for a Paramount takeover? Share your thoughts in the comments.