Just when we thought the credits were about to roll on the Warner Bros. Discovery sale, the writers threw us a massive plot twist.
In a move that has sent shockwaves through both Wall Street and Hollywood, Warner has officially restarted negotiations with Paramount. After months of leaning toward a massive $72 billion tie-up with Netflix, Warner’s board just hit the “pause” button on the streamer to see if Paramount’s pockets are truly as deep as they claim.
Here is the breakdown of the high-stakes drama currently unfolding in the boardroom.
Hollywood’s Heavyweight Bout: Warner Reopens the Door to Paramount
Just when we thought the credits were about to roll on the Warner Bros. Discovery sale, the writers threw us a massive plot twist.
In a move that has sent shockwaves through both Wall Street and Hollywood, Warner has officially restarted negotiations with Paramount. After months of leaning toward a massive $72 billion tie-up with Netflix, Warner’s board just hit the pause button on the streamer to see if Paramount’s pockets are truly as deep as they claim.
The Sweetened Deal
Paramount isn’t just knocking on the door anymore; they’re trying to kick it down with a $77.9 billion hostile all-cash offer. To get Warner back to the table, Paramount dangled a few irresistible carrots, signaling a willingness to jump from $30 to $31 per share—and potentially even higher.
To prove they aren’t just stalling for time, Paramount also baked in a “ticking fee” that would pay shareholders an extra 25 cents per share for every quarter the deal remains unclosed starting in 2027. Perhaps most importantly, they’ve offered to personally foot the $2.8 billion breakup fee that Warner would owe Netflix if they decide to walk away from their current agreement.
Netflix Plays it Cool (For Now)
Netflix currently holds the “preferred suitor” status with a signed agreement to acquire the studios and the Max streaming service. While they’ve granted Warner a seven-day window to entertain Paramount’s advances, their stance remains icy: “We have the only signed, board-recommended agreement.” It’s a confident position, especially since Netflix still holds the ultimate trump card—the right to match any offer Warner accepts from a rival bidder.
Why This Matters
This isn’t just about corporate balance sheets; it’s about who owns the keys to the cultural kingdom. We are talking about the future of iconic brands like HBO, DC Studios, and the Wizarding World of Harry Potter, not to mention heavy-hitting news and sports outlets like CNN and TNT.
Investors are clearly loving the chaos. Paramount shares surged over 8% and Warner rose 3% on Tuesday morning, while Netflix saw a slight dip. The market clearly smells a bidding war, and in Hollywood, a bidding war usually leads to a very expensive, very dramatic finale.
The “Best and Final” Countdown
Warner CEO David Zaslav has set a strict deadline for this high-stakes game. Paramount has until February 23rd to put their “best and final” offer in writing and prove they can deliver a proposal that provides more value and certainty than the Netflix deal. If they can’t, this window will slam shut as quickly as it opened.
As Zaslav put it, the goal now is to see if Paramount can actually deliver an “actionable, binding proposal” rather than just talk. The clock is officially ticking. By next week, we’ll know if Warner is heading to the “Red N” or if Paramount is about to pull off the ultimate underdog acquisition.
