If Paramount’s offer is deemed superior, Netflix will have just four business days to revise its terms, placing pressure on the streaming giant to either raise its bid or walk away.
The Competing Proposal
Paramount Global has proposed $31 per share in cash, alongside a 25 cent per share daily ticking fee per quarter. The offer also includes a $7 billion regulatory termination fee payable by Paramount Skydance if the deal collapses due to regulatory barriers.
That termination fee is significant. It signals confidence in navigating antitrust scrutiny and offers financial protection to shareholders if the transaction is blocked.
Warner Bros. will now enter further discussions with Paramount. If the board determines the proposal qualifies as a “Company Superior Proposal,” Netflix would be contractually entitled to a short negotiation window to amend its own offer.
Strategic Stakes
For Netflix, securing Warner Bros. titles is central to maintaining its competitive edge in the global streaming arms race. High profile studio libraries provide long tail subscriber retention and international leverage.
Paramount’s move complicates that strategy. By offering a stronger financial package and regulatory assurances, it positions itself as a more secure buyer in a sector increasingly scrutinized by regulators.
The development also comes amid broader industry debate about theatrical windows. Director James Cameron has publicly expressed concern about streaming platforms’ commitments to keeping films in cinemas for defined release periods, adding pressure around distribution control and long term studio strategy.
What Happens Next
Warner Bros.’ board now holds the immediate leverage. If it designates Paramount’s bid as superior, Netflix must decide quickly whether to increase its offer.
The outcome will determine not just ownership of film assets, but influence over theatrical release models, licensing economics, and bargaining power across Hollywood.
A revised bid from Netflix would escalate the battle. A withdrawal would hand Paramount a decisive advantage in consolidating premium studio content.
The clock is now ticking on Netflix’s response.
