• Paramount Skydance submits a higher offer for Warner Bros Discovery amid a bidding war.
• Netflix's current bid stands at $27.75 per share, while Paramount aims to exceed this significantly.
• The outcome may reshape Hollywood dynamics given the stakes involving major franchises such as "Harry Potter" and "Game of Thrones."

Paramount Skydance has made a revised offer for Warner Bros. Discovery, enhancing its initial bid to try to outdo the frontrunner, Netflix, in what is becoming a heated takeover battle. The latest move follows a week of discussions to address Warner Bros.' concerns regarding financing, with Paramount's new offer, initially set at $30 per share, totaling approximately $108.4 billion, according to Reuters.

Warner Bros. Discovery has indicated it is considering this new bid without disclosing its details, while also affirming that its existing merger agreement with Netflix remains valid. The board continues to recommend the Netflix deal, which is valued at $27.75 per share or $82.7 billion, indicating the competitive nature of this bidding war, reports Reuters and CBS News.

The battle is not just financial; it also includes significant political undertones. Recent comments from former President Donald Trump aimed at Netflix's board member Susan Rice, have added controversy to the situation, asserting that her position might influence negotiations adversely. Paramount's leadership has portrayed its offer as superior financially, while Netflix believes its proposal will withstand scrutiny regarding potential antitrust issues, according to India Times.

As the situation evolves, Paramount is reportedly willing to cover the $2.8 billion penalty Warner Bros. would incur if it backs out of the Netflix deal, alongside additional cash incentives to sweeten its offer. Analysts suggest that a bid exceeding $34 per share may put an end to the bidding war, highlighting the intense scrutiny surrounding this acquisition process, as noted by Reuters and CBS News.