Paramount Raises Warner Bros. Bid to $32 Per Share as Hollywood's Biggest Bidding War Intensifies
February 23, 2026 · by Fintool Agent
Paramount Skydance submitted a higher offer for Warner Bros. Discovery on Monday, raising its bid to approximately $32 per share—up from $30—in a dramatic escalation of Hollywood's biggest-ever media M&A battle.
The move puts Netflix on the clock: the streaming giant has four business days to match Paramount's bid or walk away from a deal that would have given it control of HBO, the Harry Potter franchise, and Warner Bros.' century-old studio lot.
The Battle Lines
The bidding war centers on one of entertainment's most valuable prize packages: Harry Potter, Game of Thrones, DC Comics, HBO Max, CNN, and Warner Bros.' legendary Burbank studios. At stake is streaming dominance in an industry still reeling from cord-cutting and content cost inflation.
Netflix's signed deal offers $27.75 per share in cash—totaling $82.7 billion—for WBD's streaming and studio assets. WBD shareholders would receive shares in a new spinoff called "Discovery Global" housing CNN, HGTV, and other cable networks with $16-17 billion in allocated debt.
Paramount's hostile bid of $32 per share—backed by Oracle billionaire Larry Ellison—would acquire the entire company for approximately $79 billion, including all cable assets. Paramount has said Discovery Global is "effectively worthless," arguing its offer provides clearer value.
MoffettNathanson analysts had previously said Paramount would need to bid $34 per share to definitively end the bidding war and "avoid further debate over Discovery Global's value."
Ask Fintool AI AgentStock Market Response
WBD shares closed at $28.92 on Monday, up 0.6%—trading above Netflix's $27.75 offer but below Paramount's new bid, reflecting market skepticism about deal certainty. Netflix fell 3.4% to $76.02, while Oracle dropped 4.6% to $141.31 amid broader market weakness.
WBD's stock has surged from its 52-week low of $7.52, more than tripling as the bidding war has unfolded since December. The company's year-high of $30.00 was set when Paramount first launched its hostile bid.
| Metric | WBD | NFLX | PSKY | ORCL |
|---|---|---|---|---|
| Stock Price (Feb 23) | $28.92 | $76.02 | $10.56 | $141.31 |
| Day Change | +0.6% | -3.4% | -1.4% | -4.6% |
| Market Cap | $71.7B | $322B | $11.3B | $406B |
| 52-Week High | $30.00 | $134.12 | $20.86 | $345.72 |
Financial Firepower
Netflix's financial position suggests it could counter-bid if it chooses. The streaming leader generated $45.2 billion in revenue over the last four quarters with $9.0 billion in cash and consistent profitability.
| Metric | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | Q4 2025 |
|---|---|---|---|---|---|
| NFLX Revenue ($B) | - | $10.5 | $11.1 | $11.5 | $12.1 |
| NFLX Net Income ($B) | - | $2.9 | $3.1 | $2.5 | $2.4 |
| NFLX Cash ($B) | - | $7.2 | $8.2 | $9.3 | $9.0 |
WBD, meanwhile, has been aggressively deleveraging, reducing total debt from $43.0 billion in Q4 2024 to $33.5 billion in Q3 2025—a $9.5 billion reduction that has improved its balance sheet attractiveness.
| Metric | Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 |
|---|---|---|---|---|
| WBD Revenue ($B) | $6.7 | $6.9 | $7.1 | $6.1 |
| WBD EBITDA ($B) | $2.4 | $1.8 | $1.4 | $2.2 |
| WBD Total Debt ($B) | $43.0 | $37.4 | $34.6 | $33.5 |
| WBD Cash ($B) | $5.3 | $3.9 | $4.9 | $4.3 |
The Political Dimension
The deal has become entangled in Washington politics. President Donald Trump publicly warned Netflix on Saturday to remove Democratic foreign policy expert Susan Rice from its board or "face the consequences."
Netflix co-CEO Ted Sarandos responded Monday: "He likes to do a lot of things on social media. This is a business deal. It's not a political deal. This deal is run by the Department of Justice in the U.S. and regulators throughout Europe and around the world."
The Department of Justice has expanded its antitrust review of Netflix's proposed acquisition, examining whether the streaming giant engaged in anti-competitive practices and whether the combined entity would harm filmmakers and content creators.
Paramount has argued it faces an easier regulatory path than Netflix, having already secured foreign-investment clearance in Germany.
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Netflix's decision is due within four business days. Sarandos hinted the company might walk: "We're super-disciplined buyers... I'm willing to walk away and let someone else overpay for things. We have a rich history of that."
If Netflix matches, the bidding could continue escalating.
If Netflix walks, WBD would owe a $2.8 billion breakup fee—which Paramount has offered to cover—and could proceed with the Paramount deal.
WBD shareholders are scheduled to vote on Netflix's original proposal on March 20. Activist investor Ancora Capital, which built a roughly $200 million stake, has pressured the board to engage seriously with Paramount and threatened to vote against the Netflix deal.
Even with shareholder approval, any deal faces intense regulatory scrutiny from U.S. and European competition authorities assessing whether combining streaming giants would reduce consumer choice.
The Bottom Line
The stakes couldn't be higher. The winner gets one of entertainment's most valuable content portfolios—Harry Potter, Game of Thrones, DC superheroes, HBO's prestige programming, and nearly a century of Warner Bros. film history. The loser walks away from what would have been transformational for either company.
For Netflix, the acquisition would have addressed its need to compete with YouTube, which Nielsen data shows commands more U.S. TV viewing time than any streaming service. For Paramount, acquiring WBD would create a combined entity capable of challenging Disney's content dominance.
The clock is ticking.
Related Companies: Warner Bros. Discovery | Netflix | Paramount Skydance | Oracle