Paramount submits higher offer for Warner Bros, moves to block Netflix

Paramount Skydance has submitted a higher offer for Warner Bros Discovery, ratcheting up efforts to derail the HBO Max owner’s deal with Netflix.

The bidding war for one of Hollywood’s most coveted assets, including the “Harry Potter” and “Game of Thrones” franchises, has raised the stakes for dominance in the streaming-led market.

A source familiar with the new offer told Reuters on Monday that Paramount’s new bid — which improves its initial offer of $108.4 billion, or $30 per share, for the whole company — seeks to address Warner Bros’ concerns about the certainty of its financing.

It could not be immediately ascertained how the bid was revised. Warner Bros and Paramount declined to comment, while Netflix could not immediately be reached.

Warner Bros’ chosen suitor Netflix, which offered to buy the studios and streaming assets for $27.75 per share in cash, or $82.7 billion, is allowed to match the latest bid from David Ellison-led Paramount.

Warner Bros rejects revised Paramount bid, gives one-week ultimatum for new offer

Variety in a report late on Monday said that Warner Bros was likely to take the Paramount offer under review while still recommending the Netflix pact to its shareholders.

Netflix has ample cash and could bump up its offer for HBO Max owner, while Paramount’s rival bid is backed by Oracle billionaire Larry Ellison.

Warner Bros plans to spin off its cable TV assets, such as CNN and HGTV, into Discovery Global, which could fetch between $1.33 and $6.86 a share, according to Warner Bros’ estimates.

Netflix said its offer gives Warner Bros shareholders added upside from the Discovery Global spinoff, which WBD argues will add value by giving the new company greater strategic, operational and financial flexibility.

However, Paramount has said the cable spinoff central to the streaming giant’s offer is effectively worthless.

The Star