Netflix Poised to Increase Offer in Warner Bros Fight

Key Moments

Rival Bids Put Warner Bros in the Spotlight

Netflix has substantial financial capacity and could raise its proposal for HBO Max owner Warner Bros Discovery if Paramount Skydance lifts its own bid, according to two people familiar with the situation.

The two companies are competing for control of Warner Bros and its extensive catalog, which includes high-profile franchises such as “Harry Potter”, “Game of Thrones”, DC Comics and Superman.

Warner Bros is advancing with a shareholder vote scheduled for March 20 on Netflix’s offer, but it has given Paramount one week to present a more attractive alternative.

Netflix reportedly has room to sweeten its bid in the battle for Warner Bros.

with a Monday deadline looming and board concerns in play. Big moves ahead in the streaming wars.#Netflix #WarnerBros pic.twitter.com/1r6ns3F6UY

— Entertainment Feed (@EntFeed_) February 20, 2026

Deal Structures and Valuations

Netflix has put forward a bid of $27.75 per share, valuing Warner Bros’ studio and streaming operations at $82.7 billion. Paramount, in contrast, has offered $30 per share, or $108.4 billion, for the entire company, including Discovery Global, which encompasses CNN, HGTV and other television assets.

Both Netflix and Warner Bros declined to comment.

Netflix, the creator of “Stranger Things”, had about $9.03 billion in cash and cash equivalents on its balance sheet as of December 31, the people said, giving it flexibility to raise its offer if needed.

Monday Deadline for Paramount’s “Best and Final” Offer

Warner Bros rejected Paramount’s most recent hostile takeover proposal on Tuesday, but granted the rival studio until the end of Monday to deliver a “best and final” bid. According to Warner Bros, Paramount drew the board into discussions after informally signaling interest at $31 per share.

“Netflix still looks to be in the driving seat, but that can quickly shift,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown. “Price will likely be the deciding factor — Warner’s concerns around funding and regulatory risk are real, but at a high enough number, they become secondary.”

Britzman anticipates that Netflix will respond if Paramount raises its offer. “But the real twist is that these deals were never apples‑to‑apples, and it may ultimately come down to how much value the board and shareholders assign to the network business that Netflix would leave behind,” he said.

Paramount stated that it will keep pursuing the tender offer it has launched for the studio, oppose what it called the “inferior” Netflix merger, and still intends to nominate directors for the upcoming Warner Bros annual meeting.

Investor attention is now focused on whether the CBS-parent will enhance its proposal, which Netflix is permitted to match under the terms of its merger agreement with Warner Bros, according to the company.

Warner Bros Chairman Samuel DiPiazza Jr. and CEO David Zaslav wrote in a letter to Paramount’s board on Tuesday that “we continue to recommend and remain fully committed to our transaction with Netflix”.

Board-Level Concerns Weigh on Paramount’s Proposal

Paren Knadjian, partner at Eisner Advisory Group, said Paramount’s persistence indicates it believes it has a path to success.

“Board‑level concerns around financing structure, timing and regulatory approval meaningfully detract from the attractiveness of Paramount’s proposal, irrespective of headline valuation,” he said.

Last week, Paramount proposed to pay Warner Bros shareholders additional cash for each quarter in which the transaction does not close after this year, and said it would cover the $2.8 billion breakup fee that Warner Bros would owe Netflix if it terminated their agreement. Warner Bros, however, said the revised package still did not meet the standard required for its board to deem it a superior proposal.

In a letter, the Warner Bros board said Paramount’s offer left several questions unresolved, including who would bear responsibility for a potential $1.5 billion junior lien financing fee, how the deal would proceed if debt financing fell through, and whether equity financing led by Larry Ellison was fully committed.