Paramount Skydance submitted a higher offer for Warner Bros Discovery, a source familiar with the matter told Reuters , ratcheting up efforts to derail the HBO Max owner’s deal with Netflix.
The bidding war for one of Hollywood’s most coveted assets, including the “Harry Potter” and “Game of Thrones” franchises, has raised the stakes for dominance in the streaming-led market.
Paramount’s new bid — which improves its initial offer of $108.4 billion, or $30 per share, for the whole company — seeks to address Warner Bros concerns about the certainty of its financing, the source said.
Reuters could not immediately determine how the bid was revised. Warner Bros and Paramount declined to comment, while Netflix could not immediately be reached.
Warner Bros’ chosen suitor, Netflix, which offered to buy the studios and streaming assets for $27.75 per share in cash, or $82.7 billion, is allowed to match the latest bid from David Ellison-led Paramount.
Netflix has ample cash and could bump up its offer for HBO Max owner, while Paramount’s rival bid is backed by Oracle billionaire Larry Ellison.
The CBS parent was asked to submit its “best and final offer” after Warner Bros rejected an enhanced bid that included paying the $2.8 billion in termination fee to Netflix and adding a 25-cent per share quarterly “ticking fee” from next year to compensate Warner Bros shareholders for any delay in deal closure.
Warner Bros had said Paramount’s February 10 offer still falls short of what its board would consider a superior proposal and gave a seven-day deadline until February 23 to submit a revised offer.
MoffettNathanson analysts had earlier said that an offer in the range of $34 per share from Paramount would end the bidding war and “avoid further debate over Discovery Global’s value.”
Warner Bros plans to spin off its cable TV assets, such as CNN and HGTV, into Discovery Global, which could fetch between $1.33 and $6.86 a share, according to Warner Bros estimates.
Netflix said its offer gives Warner Bros shareholders added upside from the Discovery Global spinoff, which WBD argues will add value by giving the new company greater strategic, operational and financial flexibility.
However, Paramount has said the cable spinoff central to the streaming giant’s offer is effectively worthless.
