Warner Bros. Discovery (NASDAQ:WBD) confirmed Tuesday that it has received a revised acquisition proposal from Paramount Skydance, marking a dramatic escalation in the battle for Hollywood’s most storied studio and its massive library of IP.
The news comes immediately following the expiration of a seven-day "limited waiver" granted by Netflix, which allowed WBD to engage with Paramount Skydance to clarify what the board previously described as "unresolved deficiencies" in its financing and regulatory path.
While WBD did not disclose the specific terms of the new offer, a representative for Paramount Skydance had privately indicated a willingness to pay at least $31 per share—a premium over its previous $30-per-share, $108.4 billion all-cash bid.
Despite the revised offer, the WBD board stated that its existing merger agreement with Netflix remains in effect and that it "continues to recommend" the Netflix transaction.
Under the Netflix deal, valued at approximately $82.7 billion, the streaming giant would acquire WBD’s studios and streaming business (including HBO Max), while WBD’s linear television networks—such as CNN, HGTV, and TNT—would be spun off into a new entity called "Discovery Global."
Paramount Skydance has positioned its bid as the "superior financial offer," arguing that its proposal to buy the entire company provides more certainty for shareholders and faces fewer antitrust hurdles than a combination of the two largest streaming services.
To sweeten the deal, Paramount has reportedly offered to cover the $2.8 billion breakup fee owed to Netflix and has proposed a "ticking fee" of $0.25 per share per quarter if the deal is delayed beyond 2026.
WBD shareholders are currently scheduled to vote on the Netflix merger on March 20, 2026.
Analysts suggest that for Paramount to successfully disrupt the deal, it must provide an offer significant enough to force the WBD board to declare it a "Company Superior Proposal," a move that would trigger Netflix's right to match the new terms within four business days.