Aerial view of the Paramount logo on the water tower at Paramount Studios on February 23, 2026 in Los Angeles, California.
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warner bros discovery On Tuesday, the company announced that it had received a higher-level acquisition offer from the company. paramount skydance We plan to consider new bids based on the terms of our existing contract with. Netflix.
Last week, WBD announced it would re-enter deal negotiations with Paramount on the condition of a seven-day waiver from Netflix. WBD and Netflix have agreed to sell Legacy Media Group’s studio and streaming businesses to the streamer. Paramount is aiming to acquire WBD in its entirety.
“After discussions with PSKY during the seven-day qualified exemption period, we have received a revised PSKY proposal to acquire WBD and are considering it in consultation with our financial and legal advisors,” WBD said in a statement. “Following the board’s review, we will update our stockholders. The Netflix merger agreement remains in effect and the board continues to recommend in favor of the Netflix transaction. WBD stockholders are advised not to take any action with respect to the amended PSKY tender offer at this time.”
Paramount confirmed in a statement that it had submitted a revised bid and said it would continue with its previously announced tender offer while the WBD board considers both transactions.
If WBD determines that Paramount’s new proposal is superior, Netflix will have four days to improve on the previously agreed proposal. Netflix agreed in December to acquire WBD’s studio and streaming assets for $27.75 per share, giving the company an asset value of approximately $72 billion and a total enterprise value of approximately $82.7 billion.
Paramount then launched a hostile tender offer to WBD shareholders for $30 per share for the entire WBD company, including linear cable networks such as CNN, TBS, HGTV, and TNT, as well as digital assets such as Bleacher Report and House of Highlights.
If WBD concludes that Paramount’s new offer is superior and Netflix does not change its bid, Netflix will receive a $2.8 billion penalty. Paramount had previously agreed to fund that fee as part of a modified hostile bid.
If Paramount and WBD are combined, HBO Max and Paramount+ will be combined, and the revenue will combine for two of the five major movie studios: Warner Bros. and Paramount Skydance Studios. Additionally, CNN and CBS News will be placed under one ownership structure.
Both the Netflix and WBD deal and the potential merger of Paramount and WBD require approval from U.S. and European regulators to complete, and both deals have raised antitrust concerns among critics.
