Warner Bros reopens door to Paramount, putting Netflix deal in doubt

Warner Bros Discovery opened the door on Tuesday to Paramount Skydance after the rival bidder raised its offer to $31 per share. The intense bidding war for the studio behind Batman and Harry Potter has reached a fever pitch, with the board signaling that Netflix may lose its place as the preferred suitor.

Paramount enticed Warner’s board back to the bargaining table last week by raising the possibility of an improved cash offer for Warner shareholders. In its revised bid, Paramount raised the termination fee it would ‌pay should the deal ⁠fail to gain ⁠regulatory approval, to $7 billion – up from $5.8 billion.

It also agreed to pay Warner shareholders 25 cents per share per quarter, for every quarter beyond September 30 that the deal does not close.