Warner Bros Discovery wants Paramount to raise its offer to $30 per share, Axios reports

Warner Bros. Discovery’s board is pressing Paramount/Skydance to raise its $23.50-per-share bid to roughly $30 per share—Paramount’s offer is reportedly 80% cash and 20% stock—raising the implied equity value to $74.34 billion from the current $58.23 billion; the push for a higher price underscores the board’s leverage as multiple strategic options, including a full sale or break-up, are being considered. Paramount has denied reports it is forming a $71 billion consortium with Gulf sovereign wealth funds, though the Financial Times says CEO David Ellison has had preliminary talks with Saudi Arabia’s PIF and other Gulf investors and the Ellison family is said to be a key backer. Shares of Warner Bros. Discovery jumped about 5% (Paramount +2%), Comcast and Netflix have also explored bids, and the deadline for non-binding first-round offers is Nov. 20, leaving financing and final suitors still uncertain.

Analysis

Warner Bros. Discovery's board is pressing Paramount/Skydance to raise its $23.50-per-share bid to about $30 per share; Paramount's proposal is reported to be 80% cash and 20% stock and a $30 price would imply an equity value of $74.34 billion versus the current $58.23 billion implied by the $23.50 offer. The deadline for non-binding first-round bids is Nov. 20, which compresses the timeline for potential bid increases or competing offers.

Market reaction has been positive for the target and acquirer: WBD shares closed up roughly 5% and Paramount rose about 2% on the reports. Paramount has denied that a $71 billion consortium of Gulf sovereign funds is in place, while other reports and the Financial Times say CEO David Ellison has held preliminary talks with PIF and Gulf investors; Comcast and Netflix have also explored bids, leaving financing and the final suitors uncertain.

The board's demand for a higher price highlights leverage derived from strategic alternatives WBD is exploring — including separation or sales of business units amid television revenue declines — but the valuation gap and unconfirmed sovereign backing create execution risk. Investors should focus on confirmed financing, any revised offer structure (cash/stock mix) and subsequent board communications to gauge deal probability and likely premium capture.

Key Decisions for Investors

• Monitor developments ahead of the Nov. 20 non-binding bid deadline and the board's public statements; defer material directional exposure to WBD until a credible financing package or a higher firm bid is announced
• If a near-term bid approaches the board's ~$30 target with strong cash commitment, consider an event-driven long in WBD paired with a hedge (short index or protective puts) to capture potential takeover premium while limiting downside
• Watch Paramount's financing mix (reported 80% cash / 20% stock) and any confirmed Gulf sovereign involvement closely, because increased equity consideration or uncertain sovereign backing raises execution and dilution risk for PARA shareholders