Hollywood giant Paramount has raised its bid for Warner Bros Discovery, intensifying a takeover battle with streaming company Netflix.
The Warner board said on Tuesday it would review Paramount’s revised proposal to determine whether it is superior to the offer already agreed with Netflix. Under the existing merger agreement, Netflix would have four days to submit a counterbid if the board deems Paramount’s proposal better.
Paramount increased its all-cash offer for the entire company to $31 per share, up from $30. Netflix, by contrast, is seeking to acquire only Warner’s studio and streaming businesses for around $83 billion. Under that plan, Warner’s television networks, including broadcaster CNN, would be spun off into a separate company.
Paramount, which has offered $108.4 billion for the full group, also pledged a $7 billion reverse break-up fee should regulators block the transaction. It previously committed to cover the $2.8 billion termination fee Warner would owe Netflix if it walks away from the existing deal.
It remains unclear whether the revised bid will trigger a fresh round of price increases. Netflix co-chief executive Ted Sarandos downplayed the prospect last week, telling Variety the streaming giant had previously preferred to step back rather than overpay.
Warner’s board continues to recommend shareholders approve the Netflix deal, with a vote scheduled for March 20. The companies signed a binding agreement in early December for the studio and streaming assets. Paramount approached shareholders days later with its rival offer for the entire company.
The contest also affects CNN, which has frequently reported critically on US President Donald Trump. Trump said in December the network should change owners in any deal.
Paramount was acquired by the family of Trump ally Larry Ellison last year, which has prompted concerns over CNN’s editorial independence.
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