Warner Bros rejects revised Paramount bid, but remains open to a final offer
"We continue to recommend and remain fully committed to our transaction with Netflix," said Warner Bros chairman and CEO in a letter to Paramount.
The Paramount water tower is shown on the Paramount studio lot in Hollywood, Los Angeles, California, US, Jan 13, 2026. (Photo: REUTERS/Mike Blake)
LOS ANGELES: Warner Bros Discovery on Tuesday (Feb 17) rejected Paramount Skydance's latest US$30-a-share hostile bid, but gave the Hollywood studio seven days to come up with a "best and final" offer for the owner of HBO Max and the Harry Potter franchise.
Paramount informally broached an even higher per-share price of US$31, Warner Bros said, apparently enticing the board to the table. But its response to Paramount indicates Warner Bros prefers its deal with Netflix, and the odds of a switch are long.
Paramount has until Feb 23 to make a new offer, which Netflix is allowed to match under the terms of the merger agreement, Warner Bros said.
"Our Board has not determined that your proposal is reasonably likely to result in a transaction that is superior to the Netflix merger," Warner Bros Chairman Samuel DiPiazza Jr. and CEO David Zaslav said in a letter sent to the Paramount board on Tuesday.
"We continue to recommend and remain fully committed to our transaction with Netflix."
The two media giants have been vying for control of Warner Bros, its flagship film and TV studios and deep content library, in a contest that highlights the high stakes of a rapidly shifting entertainment landscape.
A successful deal will give the suitor ownership of Warner Bros' extensive film and television library, which includes classics ranging from Casablanca and Citizen Kane to wildly popular favourites like Friends and Batman.
Warner Bros said in its letter it expects a bid above US$31 per share, more so because a Paramount financial adviser had orally informed if Warner Bros re-opens deal talks, Paramount would agree to this price, which is not its best offer.
"Time is running out for Paramount with this saga wrangling on, for way too long, which is in no one's interest," PP Foresight analyst Paolo Pescatore said. "For now the ball is in Paramount's court."
Shares of Paramount rose 6 per cent, while Warner Bros Discovery was up 2.3 per cent. Netflix shares were down 1.4 per cent.
Paramount's current offer for the whole company comes to US$108.4 billion, while Netflix is offering US$27.75 a share, or US$82.7 billion, just for its studio and streaming businesses.
SHAREHOLDER VOTE ON NETFLIX DEAL
Warner Bros, which has rejected Paramount's offers to buy the entire company, is moving forward with a vote on Netflix's bid on Mar 20.
The merger, if approved, would take place after Warner Bros spins off its Discovery Global cable operations, which include CNN, TLC, Food Network and HGTV, into a separate, publicly traded company.
Discovery Global could fetch between US$1.33 per share and US$6.86 a share, according to Warner Bros estimates.
Warner Bros' decision to engage with Paramount marks a shift for the studio.
Paramount has said the board "never meaningfully engaged" with them on six different offers that executives made in the 12 weeks before Warner Bros announced the merger agreement with Netflix on Dec 5. A hostile bid that Paramount launched days later was rejected later that month.
