Is the $32 per share quote coming soon? Paramount's Top Gun(PSKY.US) increases efforts to acquire Warner Bros. Discovery(WBD.US)

The acquisition battle surrounding Warner Bros. Discovery continues to heat up.

According to industry sources cited by media on Monday, Paramount (PSKY.US) is expected to make a $32 per share bid for the entire Warner Bros. Discovery (WBD.US).

The report states that last week, Warner Bros. Discovery agreed to renegotiate with Paramount to seek a “final and best” offer. Previously, a Paramount executive told Warner Bros. Discovery board members that if HBO’s parent company re-enters negotiations, Paramount is willing to raise its bid to over $31 per share, and that this offer is not final. Warner Bros. Discovery then set a 7-day response deadline for Paramount, ending at 11:59 PM Eastern Time on February 23.

Notably, Paramount’s latest bid includes more attractive terms. According to reports, Paramount CEO David Ellison proposed that if the deal does not receive regulatory approval after 2026, Paramount will pay Warner Bros. Discovery shareholders at least $650 million per quarter as an “incremental compensation fee.” Additionally, Paramount has agreed to bear a $2.5 billion termination fee, which would be paid to parties such as Netflix (NFLX.US) under certain circumstances.

The stance of Netflix, another key player in the deal, has also attracted market attention. Co-CEO Ted Sarandos told reporter Cynthia Littleton last Friday that he did not specify how Netflix would respond if Paramount increased its bid. However, he emphasized that Netflix is known for being a “highly disciplined buyer,” with a history of withdrawing from bidding wars and letting others “pay a premium.”

Sarandos stated, “The next step depends on others. We have signed an agreement with Warner Bros. Discovery. If someone offers a better deal and the Warner Bros. Discovery board says that hasn’t happened yet, then we will let the process continue. But I won’t comment on bidding strategies.” He also reiterated that Netflix is open to walking away if the price is not right.

Regarding regulatory progress, Paramount disclosed in a filing with the U.S. Securities and Exchange Commission last Friday that its all-cash acquisition of Warner Bros. Discovery has passed the 10-day waiting period under the U.S. Hart-Scott-Rodino Antitrust Improvements Act. Paramount stated this means there are no legal obstacles to completing the acquisition within the United States.

However, under the terms of the agreement previously signed between Netflix and Warner Bros. Discovery, Netflix retains the right to match any competing bids. Warner Bros. Discovery plans to hold a special shareholder meeting on March 20 to vote on the deal related to Netflix.