Warner Bros. Discovery shares rose as investors waited for Paramount Skydance’s next move in the contest for the company, with the bidding fight intensifying after Warner’s board opened a short window for a revised offer while still backing its signed deal with Netflix. WBD traded at $28.92 on Tuesday, Feb. 24, after reports of a higher Paramount proposal submitted late Monday.
The latest turn came after Paramount raised its bid above its prior $30-per-share all-cash proposal for the full company, according to a person familiar with the matter cited in Reuters. That prior bid valued WBD at about $108.4 billion including debt, while Netflix’s existing agreement covers Warner’s studios and streaming assets at $27.75 per share, or $82.7 billion, and gives Netflix the right to match a rival offer.
Warner’s board has continued to recommend the Netflix transaction and previously told Paramount that its revised bid was not “reasonably likely” to produce a superior deal, citing value, financing risk and closing uncertainty. In a Jan. 7 statement, Warner said Paramount’s tender offer remained inferior across key terms and carried a higher risk of failure to close.
Paramount has tried to answer those concerns. On Feb. 10, it offered to cover the $2.8 billion breakup fee Warner would owe Netflix and added a 25-cent-per-share quarterly ticking fee for delays after 2026, worth about $650 million in cash each quarter, while keeping its headline price at $30 per share at that stage.
Investors and analysts have focused on two pressure points: financing certainty and the value of Warner’s planned cable-asset spinoff, Discovery Global, which would hold networks including CNN and HGTV. Reuters reported Warner estimates that spinoff could be worth between $1.33 and $6.86 per share, while Paramount has argued the asset is effectively worth little. MoffettNathanson analysts said a bid near $34 per share could end the fight.
The battle has drawn activist pressure too. Reuters reported Ancora Capital built a roughly $200 million stake and warned it could vote against the Netflix deal if Warner refused to engage with Paramount, adding another source of leverage before Warner shareholders vote on March 20.
