Main points
- Warner Bros. Discovery is considering resuming talks with Paramount Skydance, despite the signed deal with Netflix.
- Paramount offered Warner Bros. shareholders a quarterly commission and is willing to cover the termination fee with Netflix, but did not increase its price offer.
Warner Bros. may resume talks with Paramount / Depositphotos
Warner Bros. Discovery is considering resuming talks to sell itself to rival Hollywood studio Paramount Skydance, despite Warner Bros. already inking a deal with Netflix.
What did Paramount offer Warner Bros?
Warner Bros. board members are discussing whether Paramount can offer a path to a better deal, Reuters reports.
Last week, Paramount increased its offer for Warner Bros., offering shareholders additional cash each quarter if the deal doesn't close after this year. It also agreed to cover the termination fee that HBO parent company Netflix would owe if it walked away from the deal.
Paramount said it offered shareholders a quarterly “commission” of 25 cents per share (about $650 million) in cash starting in 2027 until the deal closes, and agreed to cover Warner Bros.'s $2.8 billion split fee to Netflix. However, the company did not raise its offer to $30 per share, valuing the deal at $108.4 billion.
Interestingly, both Netflix and Paramount are fighting over Warner Bros., namely for their leading film and television studios, large content library, and major franchises such as Game of Thrones, Harry Potter, and DC Comics superheroes.
What is known about the sale of Warner Bros?
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Paramount Skydance, Comcast, and Netflix are all competing to acquire Warner Bros., with Paramount wanting to buy the entire company and Comcast and Netflix interested in the film and television library. Netflix has even promised to release the studio's films in theaters if it succeeds in buying Warner Bros.
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On December 5, Netflix announced its $82.7 billion acquisition of Warner Bros., including the film and television studios HBO Max. The deal was expected to close after the spinoff of WBD's global networks division, Discovery Global, into a new public company in the third quarter of 2026.
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Filmmakers later called on the US Congress to intervene, warning of a crisis in Hollywood if the merger were to occur due to Netflix's potential impact on the movie theater market. The reason was fears of mass layoffs and antitrust issues.
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A few days later, Paramount Skydance offered $108.4 billion to acquire Warner Bros Discovery in an attempt to challenge Netflix.