• Warner Bros. Discovery now supports Paramount's $31-a-share offer over Netflix's $27.75 bid.
• Netflix opts not to counter Paramount's superior bid, marking a significant shift in Hollywood's acquisition landscape.
• Paramount's revised offer includes all of Warner's assets, while Netflix focused on its streaming services.
• Warner Bros. shareholders are set to vote on the Paramount deal on March 20.

Warner Bros. Discovery (WBD) announced that it favors Paramount Skydance's revised $31-a-share offer over Netflix's proposal of $27.75 per share, initiating a four-day period for Netflix to respond or potentially exit the bidding war. This announcement marks a significant shift in the acquisition landscape of the media industry, as Netflix previously negotiated a deal to acquire only certain parts of Warner Bros. for approximately $82.7 billion, while Paramount's latest offer seeks to buy the entire company, including its valuable cable channels and studios, according to Reuters and Business Insider.

Netflix co-CEOs Ted Sarandos and Greg Peters confirmed that due to the financial unappeal of matching Paramount's offer, they will not pursue a counteroffer, thereby clearing a path for Paramount to complete the merger bid that many in Hollywood have been speculating about for months. "We've always been disciplined... the deal is no longer financially attractive," they stated, reflecting on the competitive tension in this high-stakes auction, according to Los Angeles Times and CBS News.

With Warner Bros. Discovery's board affirming Paramount's bid as a "superior proposal," the shareholder vote on the Paramount transaction is anticipated for March 20. Paramount Skydance's CEO, David Ellison, expressed confidence in the value and speed of their offer, emphasizing that it encompasses all of Warner's media assets compared to Netflix's narrower focus. This merger faces potential antitrust scrutiny, though Paramount's executives suggest that their bid aligns promisingly with regulatory expectations, as indicated by multiple sources including BBC and NPR.