Warner Bros says Paramount bid may top Netflix deal

Nora Redmond

Wed, 25 February 2026 at 8:27 am GMT+9 3 min read

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Paramount’s new offer values Warner Bros at around $112bn. - Justin Sullivan/Getty Images North America

Warner Bros has signalled it could back Paramount’s revised takeover offer ahead of a deal already agreed with Netflix.

On Tuesday, Warner Bros said a revised $31-a-share offer from Paramount could “reasonably be expected” to lead to a superior proposal to a deal agreed with Netflix late last year.

Paramount’s new offer values Warner Bros at around $112bn (£83bn) and includes a promise to pay a $2.8bn termination fee that the Hollywood studio would be required to pay to Netflix for ending the current agreement.

The offer also includes a “ticking fee” of $0.25 per share for every quarter the deal doesn’t close and a $7bn termination fee if the transaction does not gain regulatory approval.

The improved bid represents a late effort by the billionaire Ellison family to derail an $83bn takeover of Warner Bros by Netflix, which was agreed in December.

Paramount, which is controlled by David Ellison and his tech billionaire father Larry, has made repeated approaches to try and force the Warner Bros board back to the table and last week won the right to make a best and final offer.

The studio behind The Godfather now appears to have made Warner Bros an offer it couldn’t refuse.

Warner Bros said the Netflix agreement remained in effect and the board would continue to recommend that transaction – a recommendation it would not withdraw or modify for now.

However, if Paramount follows through with its promised bid, the board signalled it may be deemed superior. Netflix will then have four business days to make its own counter offer.

It raises the prospect of a potentially intense bidding war for Warner Bros, following a months-long pursuit of the studio by both bidders.

Paramount’s stock rose just over 1pc in after-hours trading. Netflix shares also rose 1.2pc.

Warner Bros Discovery shares edged down 0.8pc on the added uncertainty about any deal.

A shareholder vote on the deal is set for 20 March.

Netflix has agreed to pay $27.75 per share for Warner Bros’s studio business, which is behind hits such as Harry Potter, and the HBO Max streaming service, known for Succession. Paramount’s bid also includes the studio’s traditional cable channels, like the CNN news network.

Paramount has stressed the regulatory risks of Netflix’s bid. The US department of justice (DOJ) has launched a review into the deal amid concerns that combining two major streaming services – Netflix and HBO Max – would hand the company too much power.

Netflix has downplayed concerns, though acknowledged that the review could drag for a year and a half.

For its part, Netflix has criticised the involvement of Saudi Arabia, the United Arab Emirates and Qatar in Paramount’s bid, highlighting restrictions on free speech in the Gulf states. The Middle Eastern nations are contributing $24bn to Paramount’s bid – twice the amount committed by the Ellison family. Paramount insists the Gulf states will not have governance rights.

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