AAP Entertainment

Paramount submits higher offer for Warner Bros

Feb 24, 2026

The Warner Bros. water tower — The increased bid for Warner Bros has raised the stakes for dominance in the streaming-led market. -AP

Paramount Skydance has 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.

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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.

Warner Bros' chosen suitor ‌Netflix, which offered to buy the studios and streaming assets for $US27.75 ($A39.32) per share in cash, or $US82.7 billion ($A117.2 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.

Paramount's ‌initial offer for ‌the whole company ⁠comes to $US108.4 billion ($A153.6 billion), or $US30 ($A43) per share.

It was asked to submit its "best and final offer" after Warner Bros rejected an enhanced bid that included paying the $US2.8 billion ($A4 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 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 $US34 ($A48) per ‌share from Paramount would end the bidding war and "avoid further debate over Discovery Global's value."

Discovery Global could fetch between $US1.33 ($A1.88) and $US6.86 ($A9.72) 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.

The David Zaslav-led Warner Bros came under pressure from Ancora Capital after the activist investor built a roughly $US200 million ($A283 million) stake in the HBO owner and accused the company of failing to adequately engage with Paramount.

The investor warned if Warner Bros refuses to re-enter discussions with Paramount, it will vote against the Netflix deal and hold the company's board accountable during its annual meeting.