Two weeks ago, I said it was over, but yesterday the business world announced that the high-stakes showdown between Netflix and Paramount just got an unexpected sequel and the battle for Warner Bros Discovery isn’t quite over yet. The hotly pursued media giant is now considering reopening talks with longtime rival Paramount Skydance, even after signing a binding deal to sell its studio and HBO Max streaming unit to Netflix.
According to Bloomberg, Warner Bros had already agreed to a $27.75 per share all-cash offer from Netflix. That deal, struck earlier this year, was supposed to put an end to months of corporate wrangling. But it seems Wall Street’s hunger isn’t satisfied just yet. Could Hollywood’s power tables be ready to turn again?
Sources say the Warner Bros board hasn’t made a final call, and is now taking a harder look at Paramount’s new proposal to see if it might deliver a richer payout (or at least pressure Netflix into sweetening its own offer). Why would the studio risk reopening old wounds? Perhaps because Paramount’s counteroffer fixes the very issues that sank its earlier bid.
Paramount kicked off this takeover fight last year with an unsolicited and bold approach straight to Warner Bros shareholders. That was more than a cold call, it was an open challenge. The board stayed quiet, and instead Paramount kept returning with higher bids, climbing to a massive $108 billion offer. It wasn’t enough, and shareholders barely responded, and then Netflix swooped in with a cleaner deal.
Netflix’s sealing move came in January 2026, when it dropped the stock mix from its original December structure. The final version—$27.75 per share, all in cash—gave shareholders certainty they could trust. Under it, Netflix would scoop up both HBO Max and the legendary Warner Bros studio in a deal worth tens of billions, including debt.
Now Paramount is back, promising to pay the $2.8 billion breakup fee Warner Bros owes Netflix if it walks away. It’s also offering to refinance Warner’s debt and compensate shareholders if the deal doesn’t close by December 31. Those pledges suggest that Paramount is ready to move fast and are confident regulators won’t block the deal. But will that confidence be enough to sway a nervous board?
Some investors, including Pentwater Capital Management and Ancora Holdings Group, are urging Warner Bros to at least pick up the phone. Still, only a sliver—less than 2%—of outstanding shares have been tendered toward Paramount so far. The interest is there, but the numbers aren’t convincing yet.
If Warner Bros decides to reopen the door, it must formally alert Netflix, giving the streaming giant a chance to match or raise its offer. That could spark a bidding war with implications far beyond Hollywood since whoever wins will control two of the most powerful entertainment brands on Earth. Who will come out on top? For now, Netflix leads, but both sides are signaling they haven’t played their final card. The question is how much is WBD worth to Netflix?
The next act of this corporate drama may just be getting started.
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