For months, despite Paramount Skydance throwing well over $100 billion around, it has seemed very apparent that Netflix will be the purchaser of Warner Bros. The original deal that was agreed and valued around $83 billion was still looking to be the best and most secure one, even if the rival production company technically offered a financially significantly bigger alternative.
However, we're now getting into crunch time for this proceeding, as in mid-to-late March, a final decision will need to be made about who gobbles up Warner Bros. and HBO Max, and this had led Paramount Skydance to serve up another bid that might actually change the power dynamic of this ongoing situation.
As per Variety, the latest bid that came in yesterday is now being regarded as potentially "superior" to Netflix's originally agreed upon deal, meaning there is an increasing chance that Warner Bros. Discovery will go back on their former agreement, pay Netflix a multi-billion dollar termination fee, and accept Paramount Skydance's offer instead.
The latest update from WBD leadership states that no determination has been made as of yet about the deal but that it plans to "engage further" with the Paramount Skydance executives about it for the foreseeable future. If this is regarded as the better option than the original deal, a four-day window will open wherein Netflix and WBD can discuss a revised deal or terminate and head their separate ways.
As for what this improved Paramount Skydance bid offers, the key improvement is a purchase price of $31 per share in cash (up from $30), an increased termination fee should regulators block the deal valued at $7 billion, a continued agreement to pay the Netflix termination fee clocking in at $2.8 billion, and a recommitment to eliminate WBD's financing cost valued at $1.5 billion.
For additional reference, Paramount Skydance's last offer had a total valuation of around $108 billion, with this new one coming in at $111 billion. That's a lot of cheddar.