Warner Bros. Discovery says Paramount Skydance raised its bid to $31 per share
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Warner Bros. Discovery said that Paramount Skydance raised its offer price to $31 per share from $30 and added that the updated bid "could reasonably be expected" to lead to a superior proposal.
Why it matters: It's a signal that Paramount's campaign to acquire all of WBD isn't over, potentially reigniting a bidding war with Netflix.
Zoom in: WBD said Paramount's revised bid also includes a ticking fee of 25 cents a share per quarter starting after Sept. 30 as well as a $7 billion termination fee.
- It still includes $2.8 billion to cover the termination fee that WBD would be required to pay Netflix if it were to end its existing agreement.
- The board noted, however, that it hasn't yet ruled that the Paramount bid is superior, but said that it would continue to engage to make that determination. For now, it still recommends WBD's deal with Netflix.
- It noted that if it did decide Paramount's bid is superior, Netflix would have four business days to negotiate with WBD and revise its deal.
Catch up quick: WBD said last week that it would reopen deal talks with Paramount for a seven-day period ending Monday after obtaining a limited waiver from Netflix.
- The move came after Paramount revised its bid and said it would cover a potential $1.5 billion in debt refinancing costs and would pay WBD shareholders a 25-cent-per-share ticking fee for every quarter it took for the deal to close past next January. That trigger has now been moved up.
- WBD faced activist investor pressure from Ancora Holdings Group, which disclosed a roughly $200 million stake and said it strongly opposed the Netflix deal and preferred Paramount's bid.
What's next: WBD previously said shareholders can vote on the Netflix agreement on March 20 at 8am ET.
Editor's note: This story has been updated with additional details.
