Warner Bros. Discovery on Tuesday confirmed it has received a revised takeover proposal from Paramount Skydance, but said its board continues to back the previously announced transaction with Netflix, setting the stage for a potential escalation in the battle for control of the Hollywood studio and its streaming assets.

In an official statement, Warner Bros. Discovery said it is reviewing the updated Paramount Skydance proposal with its financial and legal advisers. The company added that the revised approach came during a limited waiver period that allows it to engage with alternative bidders despite its existing agreement with Netflix.

The acknowledgement confirms that Paramount’s pursuit has moved into a formal evaluation phase, though the board has not altered its recommendation in favour of the Netflix deal.

Board review underway

Warner Bros. Discovery did not disclose financial details of the revised proposal but said it would update shareholders after completing its assessment. The company stressed that there can be no assurance the Paramount Skydance approach will result in a superior offer or any change to the existing transaction.

The statement effectively keeps the Netflix agreement intact for now, while fulfilling the board’s fiduciary obligation to review credible competing bids.

Industry analysts say the confirmation indicates that the takeover contest remains active, with Paramount attempting to position its revised proposal as more attractive than Netflix’s previously agreed structure, which focuses on acquiring key entertainment and streaming assets.

Paramount presses challenge

Paramount Skydance has been seeking to acquire Warner Bros. Discovery in its entirety, pitching a broader consolidation of media assets that would combine film studios, television networks and streaming platforms under one group.

The revised offer follows earlier overtures that were seen as an attempt to disrupt the Netflix-backed transaction. By submitting an updated proposal during the seven-day waiver window, Paramount has ensured its bid must be formally reviewed by Warner’s board and advisers.

Market watchers note that if Paramount’s proposal is judged financially superior, the existing agreement typically gives Netflix the right to match or improve the terms before any shift in recommendation.

High-stakes battle for media assets

The takeover interest highlights the value of Warner Bros. Discovery’s portfolio, which includes major film and television studios, a vast content library and global streaming operations. Control of these assets is viewed as critical in the intensifying competition among media and technology companies seeking scale in streaming and content production.

For Netflix, securing Warner’s studio and streaming operations would strengthen its vertical integration and content pipeline. For Paramount, acquiring Warner outright would mean a consolidation play aimed at building a larger traditional media and streaming powerhouse.

Warner Bros. Discovery’s review process is expected to continue in the coming days, with investors watching closely for any indication that Paramount’s revised bid could alter the board’s stance. Until then, the Netflix transaction remains the endorsed deal, even as the competing proposal keeps the possibility of a bidding war alive.

The shares of Warner Bros Discovery and Paramount Skydance Corp rose nearly 1% to intraday highs of $29.18 and $10.66 respectively on Tuesday, while the shares of Netflix surged nearly 1.5% to $77.12.