Warner Bros. Discovery’s board is considering reopening sale talks with Paramount Skydance after receiving a revised takeover offer, according to a Bloomberg News report published Sunday.
The board has not made a final decision and could still move forward with its current agreement with Netflix.
The report, which cited people familiar with the matter, said board members are discussing whether Paramount’s updated proposal could lead to a stronger overall deal. Reuters could not immediately confirm the report, and the companies did not respond to requests for comment.
Warner Bros. agreed in December to sell its film studio and HBO Max streaming service to Netflix for $27.75 per share, CNBC reported. Soon after, Paramount launched a hostile bid, offering $30 per share in cash.
Last week, Paramount sweetened its proposal but did not increase the $30 per share price. Instead, it added new financial incentives.
The company offered shareholders a 25-cent-per-share quarterly “ticking fee” starting in 2027 if the deal has not closed by the end of 2026.
That fee could amount to about $650 million in cash per quarter until the transaction is completed.
Paramount Offers to Cover $2.8B Netflix Breakup Fee
Paramount also agreed to cover the $2.8 billion breakup fee Warner Bros. would owe Netflix if it walks away from their existing agreement.
According to the NY Post, Paramount said it would eliminate up to $1.5 billion in possible debt refinancing costs. Altogether, Paramount’s offer values the deal at about $108.4 billion, including debt.
Both Paramount and Netflix are interested in Warner Bros. for its strong film and television studios and its large content library.
The company owns popular franchises such as “Game of Thrones,” “Harry Potter,” and DC Comics heroes like Batman and Superman. These brands are seen as powerful drivers for streaming and global growth.
Activist investor Ancora Holdings, which has built a nearly $200 million stake in Warner Bros., recently said it plans to oppose the Netflix deal.
The firm argues the board did not fully engage with Paramount over its competing bid.
According to the sources, this is the first time Warner Bros.’ board has seriously weighed whether Paramount’s improved terms could produce a better outcome or encourage Netflix to revise its own offer.
Originally published on vcpost.com
