Paramount Skydance Corporation has escalated its pursuit of Warner Bros. Discovery by submitting a higher offer for the entire company on February 23, 2026, according to Bloomberg. This development intensifies a high-stakes bidding war that has unfolded over recent months, pitting the newly formed media entity against streaming giant Netflix for control of one of Hollywood’s most storied studios.
The latest bid from Paramount improves upon its previous all-cash proposal of $30 per share, which valued Warner Bros. Discovery at approximately $108.4 billion. While the exact terms of the enhanced offer remain undisclosed publicly, it directly addresses concerns previously raised by Warner Bros. Discovery regarding the certainty and strength of financing behind Paramount’s earlier approaches. Paramount has worked to bolster confidence in its ability to complete the transaction, securing substantial equity commitments, including significant backing from Oracle Corp. billionaire Larry Ellison and other investors through his family and associated sources exceeding $40 billion.
The move follows a tightly structured timeline. In December 2025, Warner Bros. Discovery reached an agreement to sell its film and television studios, along with its HBO operations and streaming assets, to Netflix for $27.75 per share in an all-cash deal valued at around $82.7 billion. That arrangement included a plan to spin off the company’s linear television networks, such as CNN, TNT, and Discovery channels, into a separate entity known as Discovery Global. Shareholders of Warner Bros. Discovery had been scheduled to vote on the Netflix transaction at a special meeting set for March 20, 2026.
Paramount, led by CEO David Ellison following the August 2025 merger that combined traditional Paramount assets with Skydance Media, has persistently challenged the Netflix deal. The company initially approached Warner Bros. Discovery in September 2025 with lower offers before ramping up to the $30-per-share level and taking its proposal directly to shareholders in early December. After Warner Bros. Discovery deemed prior submissions insufficient, it rejected an enhanced version earlier in February but agreed to reopen limited negotiations for a seven-day window ending on February 23. This period allowed Paramount to submit what was described as its best and final offer.
The enhanced proposal incorporates additional assurances, including provisions for Warner Bros. Discovery to maintain operational autonomy leading up to any potential closing. It also builds on earlier concessions, such as a quarterly ticking fee of $0.25 per share for delays beyond certain dates, aimed at compensating shareholders and demonstrating confidence in navigating regulatory approvals swiftly. Paramount has already complied with aspects of the regulatory process, including responding to information requests from the Department of Justice.
This contest represents one of the largest media industry transactions in recent years. Warner Bros. Discovery, home to iconic franchises and productions ranging from classic films like Casablanca to modern hits in the Batman series and long-running television shows like Friends, holds immense value in an evolving entertainment landscape dominated by streaming competition and shifting consumer habits. A successful acquisition by Paramount would enable the combined entity to establish a formidable position in Hollywood, integrating extensive content libraries, production capabilities, and distribution channels.
Conversely, Netflix’s potential victory would mark a transformative expansion for the streaming leader, granting it direct ownership of premium studios and a vast catalog that could strengthen its competitive edge against rivals. The outcome carries broader implications for the entertainment sector, including ongoing discussions about media consolidation, its impact on content diversity, employment in the industry, and concentration of power among a few major players. Regulators in Washington and stakeholders in Hollywood continue to monitor the situation closely amid these concerns.
As of February 23, 2026, Warner Bros. Discovery’s board must now evaluate whether the improved Paramount bid qualifies as superior to the existing Netflix agreement. If it does, Netflix will receive a four-day window to match or exceed the new terms. The resolution of this battle will likely shape the future structure of major media conglomerates and influence strategic directions across the industry for years to come. The intense negotiations highlight the fierce competition for premium content assets in an era where scale and intellectual property ownership increasingly determine market dominance.
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