The battle for Warner Bros. is open again

Luca Fontana

18.2.2026

Translation: machine translated

The Netflix deal stands - for now. But Paramount is stepping up the pressure again, offering more money and forcing Warner to take another look at its rival. The bidding war for Hollywood's future continues, and the price is rising.

Who swallows whom - and how high will the price go? In the bidding war for Warner Bros. Discovery, the board of directors has rejected the latest Paramount offer, but has given its rival a final deadline. This is reported by Bloomberg, Deadline and Reuters, among others.

This is new. And explosive.

What happened?

In January, the matter seemed settled. Netflix and Warner Bros. Discovery had agreed on a historic deal: Netflix wanted to pay $27.75 per Warner share, all in cash. Netflix would receive the studio and streaming business from Warner Bros. in return, including HBO and the associated platforms. The classic, linear TV business with channels such as CNN or Eurosport, on the other hand, would be spun off.

The total volume of the deal: around 82.7 billion dollars. The total volume «» refers not only to the pure purchase price, but everything that goes with it - including assumed debt. In short: this is the sum that Netflix has to put on the table in the end.

And that is enormous. In future, the Group will have significantly less financial room for error. That's why many are talking about Netflix's «All-in».

Parallel to this, Paramount tried to torpedo the deal. First with a hostile $108.4-billion offer for the entire company. Then with several improved suppliers. Eight in total - all rejected by the Warner board of directors.

When that wasn't enough, Paramount went to court and demanded to see the details of the Netflix contract. The accusation: Warner had never convincingly explained why Netflix was objectively the better option.

What has changed?

Now Paramount presents the ninth offer: 30 dollars per share in cash - informally there is even rumoured to be talk of 31 dollars. In other words, more money per share than Netflix is currently offering. In addition, there is a so-called «ticking fee». This is basically a delay premium: if the deal is delayed beyond 31 December 2026, Paramount would pay an additional USD 0.25 per share and per quarter. Extrapolated, this equates to around 650 million dollars per quarter.

And more importantly, Paramount would assume the 2.8 billion dollar cancellation fee that Warner Bros. Discovery would have to pay to Netflix if the deal with the streaming giant falls through. Officially, Warner has rejected this offer. At the same time, however, the Board of Directors has granted Paramount a period of seven days to submit its «best and final» offer. A clear signal: the door is not completely closed.

This is the real news.

The Netflix deal remains the preferred option, according to the Management Board. But with Warner giving Paramount one last round, the focus is shifting away from the question of whether the deal will collapse to the question of how high the price will rise. After all, Netflix has the contractual right to make a better offer on the same terms. But the streaming giant is now under pressure to act.

Why is Warner Bros. suddenly listening?

Because legally and vis-à-vis its shareholders, it cannot afford not to consider a higher offer - even if it ultimately wants to stay with Netflix. When Paramount made a hostile bid of 108.4 billion dollars in December, Warner Bros. was still able to dismiss the offer as risky and inferior. The deal with Netflix was finalised, the board of directors seemed determined and the fronts were clear.

Today, the situation is more complex.

• Firstly: Paramount is now offering more money per share - 30 instead of 27.75 dollars. Maybe even 31 dollars. And also entirely in cash. There is also a late payment premium («Ticking Fee») and a willingness to pay the 2.8 billion dollar termination fee. This is simply more attractive for shareholders.
• Secondly: Activist investors are exerting pressure. They remind the Board of Directors of its duty to seriously consider the best economic offer. Anyone who simply wipes a higher cash offer off the table is treading on thin ice legally.
• Thirdly: The Netflix deal has been signed but not yet finalised. First of all, antitrust authorities in all major markets have to give their approval, as do shareholders. This could take another one to two years. And the longer the process drags on, the less alternative it seems.

And finally: the tone has changed. What used to be a hostile attack that immediately put the Board of Directors on the defensive now comes across as a financially calculated overall package. After all, listening does not mean agreeing.

And why is this battle for Warner Bros. so explosive?

Because it's not just about one studio. It's about the balance of power in the streaming age - and about political explosiveness.

A merger between Warner Bros. Discovery and Netflix would radically condense the market. Netflix originals, HBO, Warner Bros, the DC universe, «Harry Potter» - all under one roof. The already largest streaming service in the world would become the undisputed content superpower. This would be a nightmare for regulators: there would be even less competition, more pricing power and even greater dependence on a single platform.

A merger with Paramount would, at first glance, look less like tech dominance and more like two classic studios uniting under a new roof. More «Old Hollywood» just like that. But this is where the political controversy begins.

Warner also owns CNN - one of the last major US news channels to take an openly critical stance towards Donald Trump. Paramount, in turn, is backed by the Ellison family, and Larry Ellison is considered a close confidant of Trump. Should Paramount win, CNN would indirectly become part of a power structure that is clearly politically positioned. This scenario has long been causing nervousness in Washington.

What looks like a classic bidding war is actually a power struggle with a media-political dimension. Because whoever gets Warner not only gets blockbusters and streaming subscriptions, but also influence.

My impression

Paramount has skilfully turned the tables. Instead of being satisfied with cancellations, they are increasing the pressure step by step - both financially and strategically. But the studio is running out of time: Warner's shareholders will vote on the deal on 20 March. This is another reason why the current offer is not only higher, it also addresses precisely the weak points of the Netflix deal: risk, waiting time and uncertainty.

It remains to be seen whether Warner will really change its mind in the end. But the willingness to talk alone shows that the Netflix deal is not as set in stone as we were led to believe. The war for the future of Hollywood is open again - and it could become even more expensive.

Luca Fontana

Senior Editor

Luca.Fontana@digitecgalaxus.ch

I write about technology as if it were cinema, and about films as if they were real life. Between bits and blockbusters, I’m after stories that move people, not just generate clicks. And yes – sometimes I listen to film scores louder than I probably should.

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