In a surprising turn of events, Paramount now seeks to overtake Netflix in the ongoing bidding race to win the Warner Bros. Discovery deal. The high-stakes Hollywood merger process has now reached a crucial phase where two major entertainment companies are vying for the most valuable industry asset, trying to one-up each other like there is no tomorrow. Paramount Skydance has now upped its ante to acquire Warner Bros. Discovery (WBD) by making a higher bid.

Will Paramount's new offer enable it to topple its rival bidder, Netflix, and change the international broadcasting landscape? 

The latest proposal from Paramount comes at the climax of Warner Bros.' seven-day negotiation time provided to bidders to submit their best final offers. The period ends with Paramount's submission of its updated terms. According to Deadline, Paramount has increased its original all-cash bid of approximately $108.4 billion, which valued WBD at $30 per share, to create its new proposal, which now offers better benefits to shareholders. 

Paramount could raise the number from $30 to $31 or $32 per share or even higher to secure the deal, as Netflix stands its ground to match any offer. The new deal also includes expenses that Paramount will pay for calculating cut costs and all expenses for Netflix's $2.8 billion breakup fee in case WBD terminates its current contract. 

Netflix will pay $27.75 for each WBD share in a cash deal that will acquire WBD's studio and streaming operations, which are estimated to be worth $82.7 billion. The company changed its initial proposition to an all-cash model, which aimed to neutralize Paramount's financial strength while speeding up the deal's completion process.

With the David Ellison company placing a superior choice compared to Netflix, this renewed battle has amply triggered investor buzz and mobilized stocks. As the two entertainment titans continue their duel to win over WBD, Netflix's response is much-awaited.

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Could Netflix boss have the last laugh as it continues to defend their original bid? 

Co-chief executive Ted Sarandos recently spoke to the BBC and defended Netflix's bid to acquire Warner Bros. Discovery, citing business and industry growth. He claimed to have created over 50,000 jobs in the UK alone in this economy, adding to the company's pledge to protect cinema and improve the entertainment industry. 

"Our deal is growth [...] We're buying a movie studio and a distribution entity that we don't currently have - we'll be adding to the market," Sarandos told BBC's Today programme. 

The board of Warner Bros. Discovery had previously expressed doubts about the financial risks that Paramount's previous proposals present, as they found Netflix to be more reliable. However, WBD had recently sought clarity over Paramount's deal and asked them to submit their best and final offer on February 17, per Variety, causing the advent of the new deal. 

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What do you think about Paramount's new offer? Let us know in the comments