On Tuesday, Warner Bros' board stated that it will reassess an upgraded acquisition offer from Paramount to determine if it surpasses the terms of an existing agreement with Netflix. Paramount has raised its total acquisition offer from $30 to $31 per share. If the board concludes that Paramount's proposal is superior, Netflix, under its current merger agreement, will be required to submit a counter-offer within four days.

Paramount aims to acquire Warner Bros and its streaming business for approximately $108.4 billion, compared to Netflix's bid, which targets only the Warner Bros studio and its streaming operations, valued at about $83 billion. Under Paramount’s proposal, Warner Bros' television networks, including CNN, would be separated into a standalone company, highlighting Paramount's strategy to reshape the media landscape.

In addition to increasing its financial offer, Paramount has committed to pay a $7 billion breakup fee should regulatory authorities block the deal, a substantial increase from its previous commitment of $2.8 billion. This indicates Paramount's serious intent towards this acquisition and underscores the competitive dynamics playing out in the streaming market as companies vie for dominance in content creation and distribution.