Warner Bros. Declares Paramount's Offer Better

UPDATE Feb 26, 2026 4:45 PM CST

The board of Warner Bros. Discovery has decided that Paramount's enhanced offer is superior to the streaming and studio agreement it struck with Netflix, a switch that could kick off renewed bidding for the storied Hollywood giant. Netflix now has four business days to match or beat Paramount's proposal, the AP reports. Warner maintained on Thursday that Netflix's bid remains in play, saying its board "has not withdrawn or modified its recommendation" despite declaring Paramount's proposal better.

Feb 25, 2026 2:00 AM CST

Paramount is sweetening its pursuit of Warner Bros. Discovery, and the WBD board is taking notice, per the Hollywood Reporter. Paramount has boosted its all-cash bid to $31 per share—topping its prior $30 offer and edging past Netflix's $27.75-per-share proposal for WBD's streaming and film businesses only. Warner Bros. Discovery said the board hasn't decided if Paramount's bid is superior but said it could "reasonably be expected" to lead to the board deeming it a "company superior proposal."

Paramount's revised offer leans heavily on deal certainty: a daily ticking fee of 25 cents per share per quarter starting after Sept. 30, 2026; a breakup fee of $7 billion if regulators block the deal, up from $5.8 billion; and a promise to cover the $2.8 billion Warner Bros. would owe Netflix to walk away. The bid covers all of WBD, including cable channels like CNN, TNT, TBS, and HGTV, and comes as Paramount continues a hostile campaign aimed directly at shareholders. If the board does deem it superior, Netflix gets four business days to respond. A shareholder vote on the $82.7 billion Netflix deal is set for March 20, keeping pressure on both bidders.

NBC News reports that the WBD statement noted it would "engage further" with Paramount, indicating it could push to get the offer even higher. Media analysts predict an offer of $34 per share would likely end the bidding war. CNN reports that while Netflix has poured a lot of capital into the pursuit and is unlikely to drop it quickly, the streaming company's CEO did say last weekend that Netflix has a "reputation for [being] willing to walk away and let someone else overpay for things."