Warner Bros Discovery (WBD) is evaluating the possibility of re-entering sales discussions with Paramount Skydance, following Paramount's recent hostile cash offer of $108.4 billion to acquire the Hollywood film and TV company. This potential move could ignite a bidding war involving Netflix, which currently has an agreement with WBD. As per reports, WBD's board members are contemplating this course of action after Paramount's aggressive tactics to directly appeal to WBD's shareholders, in hopes of derailing the Netflix deal.

In addition to the large cash bid, Paramount has proposed covering a $2.8 billion fee associated with WBD's agreement with Netflix should they decide to withdraw. To sweeten their offer, Paramount has also suggested a refinancing plan aimed at eliminating $1.5 billion in costs, which includes a significant 'ticking fee' that would amount to around $650 million per quarter if the deal is not finalized by the end of the fiscal year. This financial strategy indicates Paramount's serious intention to disrupt the competitive landscape among major streaming services.

Moreover, Paramount is also enhancing its lobbying efforts by appointing Rene Augustine, a former Trump administration attorney, as its senior vice-president of global public policy. This move could potentially bolster Paramount's strategic position in the media and entertainment sector and may influence future negotiations and interest from stakeholders, including those involved with WBD.