Warner Bros (WBD) Stock: Paramount Skydance Raises Bid in Bidding War With Netflix

TLDR

• Paramount Skydance raised its WBD bid above $30/share, likely exceeding $31
• WBD’s board will review the offer but still recommends Netflix’s $27.75 deal
• If the board favors Paramount’s bid, Netflix has four days to counter
• Paramount CEO David Ellison has publicly vowed to win the deal
• A shareholder vote on the Netflix deal is scheduled for March 20

Paramount Skydance has raised its takeover bid for Warner Bros. Discovery, escalating one of the most competitive media deals in years.

Warner Bros. Discovery, Inc., WBD

The new offer tops Paramount’s previous $30-per-share all-cash bid. Bloomberg reported the move citing sources, though exact terms remain undisclosed. The bid was filed before Paramount’s seven-day negotiation window closed Monday, February 23.

According to Variety, the revised offer is expected to exceed $31 per share. WBD is expected to inform shareholders it will review the Paramount offer before markets open Tuesday — while still formally recommending the Netflix deal.

Netflix agreed to acquire WBD’s film, TV, and HBO assets for $27.75 per share in cash. Paramount’s bid covers all of WBD.

If WBD’s board rules Paramount’s offer superior, Netflix gets four days to counter.

Ellison Is Not Backing Down

Paramount CEO David Ellison has been direct: the company will not stop until it wins.

On February 10, Ellison revised his offer to include a quarterly ticking fee, a Netflix breakup fee, and debt refinancing costs — all while holding the $30-per-share price. WBD then reopened negotiations after receiving a verbal commitment from Ellison’s team to raise the bid to $31 or more.

Paramount’s offer is backed by Oracle chairman Larry Ellison, RedBird Capital, and sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi.

Political Pressure Enters the Picture

The deal has drawn attention beyond Wall Street. Lawmakers and filmmakers have raised concerns over media consolidation and potential job losses.

President Trump added to the tension over the weekend, publicly demanding Netflix fire board member Susan Rice — a former Obama and Biden administration official — or “face the consequences.”

What to Watch

PSKY stock rose 1.2% in extended trading following news of the raised bid.

WBD’s shareholder vote on the Netflix deal remains scheduled for March 20. A board decision to reconsider Paramount’s offer could complicate that timeline.

Paramount reports Q4 FY2025 earnings after market close Wednesday, February 25. Wall Street expects an adjusted loss of $0.01 per share versus a $0.11 loss a year ago, with revenue forecast at $8.15 billion, up 2.1% year-over-year.

Analysts rate PSKY a Moderate Sell on TipRanks — zero Buys, one Hold, three Sells — with an average price target of $12.33.

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