Hollywood is buzzing as Paramount Global officially confirmed on February 25, 2026, it has submitted a revised, higher all-cash offer to acquire Warner Bros. Discovery (WBD) for $31 per share. This move directly challenges the existing definitive agreement between WBD and streaming behemoth Netflix, Inc., which stands at an enterprise value of approximately $82.7 billion for WBD's streaming and studio assets. The WBD Board of Directors has acknowledged that Paramount's new proposal "could reasonably be expected to lead to a 'Company Superior Proposal'" under its current merger terms with Netflix.

Paramount's latest bid represents a significant increase from its previous $30 per share offer and aims to acquire the *entirety* of Warner Bros. Discovery, including its valuable cable networks like CNN and Discovery. The updated proposal includes several key concessions, such as an agreement to cover the $2.8 billion termination fee WBD would owe Netflix if their deal is abandoned. Additionally, Paramount has increased its regulatory termination fee to $7 billion if the transaction fails due to antitrust issues and introduced a "ticking fee" of $0.25 per share quarterly if the deal is not finalized after September 30, 2026. This comprehensive offer, with an enterprise value around $108.4 billion, signals a determined push by David Ellison to win over WBD shareholders.

The current situation sets the stage for a tense showdown. Netflix's co-CEO Ted Sarandos previously sealed a deal on December 5, 2025, for a specific part of WBD's empire. While WBD's board, led by CEO David Zaslav, continues to recommend the Netflix proposal to shareholders, they are now reviewing Paramount's sweetened terms. Netflix has a contractual right to match any superior offer within four business days should WBD's board formally deem Paramount's bid better. Both potential mergers are under intense regulatory scrutiny, with Netflix's deal currently facing an early-stage DOJ antitrust review. WBD shareholders are slated to vote on the Netflix merger on March 20, 2026.