Warner Bros (WBD) Stock: Paramount Refuses to Lose — Raises Its Bid Again

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TLDR

• Paramount Skydance has raised its bid for Warner Bros. Discovery above $30 per share, topping Netflix’s $27.75 offer
• WBD’s board is expected to review the new offer before markets open Tuesday, while still recommending the Netflix deal
• If WBD’s board favors Paramount’s bid, Netflix has four days to counter
• Paramount CEO David Ellison has publicly stated he will not stop until Paramount wins the deal
• The deal is backed by Oracle’s Larry Ellison, RedBird Capital, and sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi

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Paramount Skydance has submitted a new, higher bid for WBD, topping its previous $30-per-share all-cash offer. Bloomberg reported the move, citing unnamed sources, with specific terms not yet disclosed.

Warner Bros. Discovery, Inc., WBD

The new offer is expected to exceed $31 per share. Paramount filed the bid before its seven-day negotiation window closed on Monday, February 23.

WBD is expected to tell shareholders it will review the Paramount offer before markets open Tuesday, according to Variety. Despite this, WBD’s board is still formally recommending the Netflix deal.

Netflix agreed to acquire WBD’s studios, TV, and streaming assets for $27.75 per share in cash. That offer covers Warner’s film, TV, and HBO properties — not the full company.

Paramount’s bid, by contrast, is for all of WBD.

If WBD’s board decides Paramount’s new offer is superior, Netflix will have four days to match or beat it.

Ellison Won’t Back Down

Paramount CEO David Ellison has made his intentions clear. He has stated publicly the company will not stop until it has won the deal.

On February 10, Ellison revised his bid to include a quarterly ticking fee, a Netflix breakup fee, and debt refinancing costs, while keeping the $30-per-share price. WBD then reopened talks with Paramount after receiving a verbal commitment from Ellison’s team to push the bid to $31 or more.

Paramount’s offer is backed by Oracle chairman Larry Ellison, private equity firm RedBird Capital, and sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi.

The political angle has added friction to an already complex deal. President Trump escalated tensions over the weekend by publicly demanding Netflix fire board member Susan Rice — a former Obama and Biden administration official — or “face the consequences.”

Lawmakers and filmmakers have also raised concerns about media consolidation and job losses.

What’s Next for WBD and PSKY

PSKY stock rose 1.2% in extended trading after news of the raised bid broke.

Over the past year, PSKY stock has fallen 9.5%. Analysts on TipRanks rate it a Moderate Sell, based on zero Buy ratings, one Hold, and three Sells. The average price target sits at $12.33, implying roughly 16.8% upside from current levels.

A shareholder vote on the Netflix deal is currently scheduled for March 20.

Paramount is set to report Q4 FY2025 earnings after market close on Wednesday, February 25. Wall Street expects an adjusted loss of $0.01 per share, compared to a loss of $0.11 per share in the same period last year. Revenue is forecast at $8.15 billion, up 2.1% year-over-year.

WBD’s board reviewing Paramount’s upgraded offer before that earnings release could shift the narrative heading into the week.

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