Warner Bros. Discovery said on February 24, 2026, that it has received a revised acquisition proposal from Paramount Skydance, potentially reshaping its existing agreement with Netflix.
The company’s board stated that Paramount’s updated offer “could reasonably be expected to lead to” a superior proposal compared to the current Netflix deal. This assessment clears a key legal threshold, allowing Warner Bros. to enter more formal discussions with Paramount.
Paramount’s revised bid includes $31.00 per share in cash, marking a $1 increase from its earlier offer, which had been valued at around $108 billion. In addition, Paramount has offered to cover the $2.8 billion termination fee Warner Bros. would owe Netflix if it exits their agreement. The company has also pledged a $7 billion fee payable to Warner Bros. if the Paramount transaction fails to close due to regulatory hurdles.
Despite the development, Warner Bros. clarified that it has not yet determined Paramount’s offer to be superior. The board said it will continue discussions to assess whether that standard is met. If deemed superior, Netflix would have 4 business days to submit a counter-offer.
Earlier, Warner Bros. confirmed that its deal with Netflix “remains in effect” and that directors “continue to recommend in favor of the Netflix transaction.” Shareholders were advised to take no action regarding the Paramount proposal while the review continues.
Netflix’s current offer stands at $83 billion for a more limited merger. However, it is expected to be prepared to raise its bid to better align with Paramount’s revised terms.
The potential outcome has also drawn political attention. Paramount is led by David Ellison, with financing largely backed by his father, Oracle founder Larry Ellison, a longtime ally of former President Donald Trump. Trump has said he will be “involved” in any decision on the merger. The US Department of Justice is reviewing Netflix’s proposed acquisition, with European and other global regulators also expected to evaluate the deal.
If Paramount prevails, CNN would come under Ellison family control. The Netflix offer excludes Warner Bros.’ television properties such as CNN and Discovery, which would be placed into a newly created publicly traded company if the Netflix deal proceeds.
Separately, Trump recently urged Netflix to remove board member Susan Rice or “pay the consequences,” following her comments about corporate accountability. Responding to the remarks, Netflix co-CEO Ted Sarandos told BBC Radio 4, “He likes to do a lot of things on social media. This is a business deal. It’s not a political deal.”
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