A high-stakes takeover battle is intensifying in the global entertainment sector, as Paramount Skydance increases its offer to acquire Warner Bros Discovery. The move could reshape the streaming landscape — closely watched in Canada, where services such as Crave, Netflix and Disney+ compete for millions of subscribers and influence domestic film and television production.
Paramount increases cash offer to $31 per share
Paramount Skydance has formally raised its bid for Warner Bros Discovery to $31 per share in cash, up by $1 from its previous proposal.
Warner Bros said its board believes the revised offer “could reasonably be expected” to result in a superior proposal compared with its existing agreement with Netflix.
The company added it would continue discussions with Paramount before deciding whether to abandon its December deal with Netflix.
Netflix has four days to respond with a counter-offer but has not yet publicly commented on the revised bid.
In a recent interview, Netflix co-chief executive Ted Sarandos described the negotiations as part of a normal process.
“I don’t want to do hypotheticals,” he said. “We very much like the deal where we’re at right now. We’re very disciplined buyers and we always have been.”
He added: “This is all a process of price discovery.”
Original Netflix agreement valued at $82 billion
Warner Bros Discovery had previously agreed to sell its film and streaming operations — including HBO — to Netflix for $27.75 per share, valuing the transaction at roughly $82 billion, including debt.
Under that arrangement, Warner Bros would spin off its remaining assets, such as traditional television networks and CNN, into a separate independent company.
For Canadian viewers, HBO content is currently distributed through domestic partners, notably Bell Media’s Crave, making the outcome of the takeover particularly relevant to licensing and streaming rights in this country.
Paramount sweetens proposal with additional financial protections
Paramount’s revised offer includes additional financial incentives designed to strengthen its position.
The company has agreed to:
- Pay $31 per share in cash
- Provide extra payments if the deal is delayed
- Cover a $2.8-billion break-up fee Warner Bros would owe Netflix if it exits that agreement
- Pay a further $7 billion if the Paramount deal itself fails
This marks the first time Paramount has officially increased its bid beyond its original $30-per-share offer for the entire company.
Paramount Skydance is backed by technology billionaire Larry Ellison and led by his son, David Ellison, as it seeks to expand its footprint and compete more directly with global streaming giants.
Political and regulatory scrutiny intensifies
Both takeover proposals have attracted attention from U.S. lawmakers concerned about media consolidation and its potential impact on competition, pricing and the future of cinema.
During a recent hearing in Washington, Sarandos faced questions about whether a merger could lead to higher subscription prices or reduced support for theatrical releases.
Paramount’s ownership structure has also drawn political scrutiny, including attention to the Ellison family’s political connections.
Such regulatory concerns could also resonate in Canada, where federal regulators and the Canadian Radio-television and Telecommunications Commission (CRTC) closely monitor foreign ownership and competition in broadcasting and streaming.
Analysts expect takeover price could rise further
Industry analysts suggest Warner Bros Discovery may be encouraging competing bids to maximize shareholder value.
Luke Stillman, managing director at U.S. media consultancy Madison and Wall, said the bidding could climb higher.
He estimated the final price could reach as much as $33 per share.
Warner Bros Discovery said its board has not yet made a final decision and will continue discussions with Paramount to determine whether a superior offer can be finalized.
Conclusion: Global streaming battle enters decisive phase
The escalating bidding war underscores the rapid consolidation reshaping the global entertainment industry. With billions of dollars at stake and major implications for streaming platforms, content production and distribution, Warner Bros Discovery’s final decision could redefine competition among media giants — including in Canada, where international ownership plays a significant role in what audiences watch at home.
