Bidding War Back? Warner Bros Reopens Door to Paramount Skydance amid Netflix Pact

Hollywood giant Warner Bros Discovery is considering reopening discussions with its previous suitor and rival studio Paramount Skydance, after receiving a revised takeover proposal.

The move comes even though Warner Bros already has a binding agreement to sell its studio and HBO Max streaming business to Netflix for $27.75 per share in cash, according to a Bloomberg report citing sources.

The Hollywood studio's board has not made a final decision but is assessing whether Paramount's improved offer could lead to a better deal, or push Netflix to raise its bid further, the report added.

Paramount first triggered the takeover battle last year with an unsolicited offer, effectively a hostile approach, directly pitching its proposal to Warner Bros shareholders. After the board did not engage, Paramount increased its offer multiple times with the last one being worth over $108 billion, in an attempt to win shareholder support.

It had also began lobbying regulators and appealing publicly to investors, arguing that its deal offered greater long-term value. However, despite the aggressive strategy, only a small fraction of shares were tendered, and Paramount ultimately lost out to Netflix's sweetened bid earlier this year.

In January 2026, Netflix strengthened its position by converting its earlier mixed cash-and-stock proposal into a fully cash offer of $27.75 per share. Its earlier December agreement had included $23.25 in cash and $4.50 in Netflix stock per share, but the revised structure eliminated stock to provide greater certainty to shareholders.

Under the deal, Netflix would acquire HBO Max and the Warner Bros film studio assets in a transaction valued at tens of billions of dollars, including debt.

Notably, Paramount has now returned with amended terms to address earlier concerns. It has offered to cover the $2.8 billion breakup fee Warner Bros would owe Netflix if it exits their agreement. The company has also proposed backing a refinancing of Warner Bros' debt and promised to compensate shareholders if the deal does not close by December 31, signaling confidence in swift regulatory approval.

This is the first time Warner Bros' board is seriously considering whether Paramount's revised offer could be superior or strong enough to reopen competitive bidding.

Some Warner Bros investors, including Pentwater Capital Management and Ancora Holdings Group, have publicly urged the board to at least engage with Paramount. However, less than 2% of outstanding shares have been tendered to Paramount so far, the report said.

If Warner Bros decides to re-engage, it must formally notify Netflix, the report added. Netflix would then have the right to match or exceed any superior offer.

For now, Netflix remains in the lead. But with Paramount reportedly signaling that its latest offer is not final, and Netflix also indicating room to go higher, the battle for one of America's largest media companies could still intensify.