Warner Bros. Discovery’s blockbuster deal plans may not be as locked in as they once seemed. While the company has been pushing forward with its agreement to sell key assets, new behind-the-scenes discussions suggest the board may be reconsidering whether it is truly getting the best possible outcome.

With rival bidders still circling and shareholders watching closely, WBD’s leadership is now facing the kind of high-pressure decision that could reshape the entire media landscape. And the biggest twist? The company may be preparing to reopen talks with the very suitor it previously rejected.

So is Warner Bros. Discovery about to spark another major bidding war?

Warner Bros. Discovery Inc. is now considering reopening sale talks with Paramount Skydance Corp. after receiving an amended offer from the rival studio. Members of WBD’s board are reportedly discussing whether Paramount’s proposal could lead to a superior deal compared to its current agreement, though no final decision has been made yet.

Sources as reported by Bloomberg noted that the board is still weighing its next move and could ultimately stick with the existing Netflix deal. However, this is the first time WBD’s leadership has seriously considered that Paramount’s bid could either surpass Netflix’s offer or pressure Netflix into improving its terms.

At the moment, Warner Bros. has already agreed to sell its namesake studio and HBO Max streaming business to Netflix in a deal valued at $27.75 per share. But Paramount is not backing down, and its latest amended terms appear designed to directly address the biggest concerns that previously made WBD reject its offer, as per Bloomberg.

To strengthen its bid, Paramount reportedly offered to cover the $2.8 billion termination fee Warner Bros. would owe Netflix if it exits their agreement. In addition, Paramount said it would backstop WBD’s debt refinancing, a move aimed at reassuring investors that the deal could remain financially stable even under challenging market conditions.

Paramount also offered an added layer of security by promising to compensate Warner Bros. shareholders if the deal does not close by Dec. 31, a move that signals strong confidence that regulatory approvals could come quickly. Still, WBD remains cautious, as the company has previously highlighted concerns about Paramount’s offer in past statements.

Yet the latest changes have clearly shifted the tone inside WBD’s boardroom and may now open the door to an all-new negotiating battle.

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So what happens if WBD decides to seriously re-engage with Paramount?

If Warner Bros. decides to reopen discussions with Paramount, it would first need to notify Netflix. WBD would then likely attempt to push Paramount to raise its offer beyond $30 per share, which is the current tender offer Paramount has been using to appeal directly to WBD shareholders. And if WBD decides Paramount’s offer is superior, Netflix would still have the right to match it.

This dynamic has already fueled speculation that WBD could be setting up a second bidding war, one that may benefit shareholders, even if the company ultimately stays with Netflix. Both companies have hinted that their offers may not be final. Paramount CEO David Ellison has reportedly said the current bid is not his “last and final” offer, while Netflix leadership has also suggested the company could go higher in order to secure WBD’s studio and streaming business.

However, both sides are also wary of overpaying. Netflix’s stock has reportedly fallen more than 40% from its June peak, as investors have expressed concern about the massive cost of acquiring Warner Bros. assets.

Meanwhile, investors are already demanding stronger terms. Chris Marangi, co-chief investment officer at Gabelli Funds, said the revised structure suggests Paramount is trying to be strategic rather than simply raising the price.

“Like the Warner Bros. board, I want to see a sweetened offer,” Marangi said.

He also noted that while he was disappointed, Paramount did not raise its price outright.

Shareholders have also been pushing publicly for WBD to engage more seriously with Paramount. Firms such as Pentwater Capital Management and Ancora Holdings Group have already voiced support for reopening talks. Earlier, Netflix’s Warner Bros. Deal faced new competition as Comcast Eyes bid. 

But so far, Paramount’s tender offer has not generated overwhelming shareholder momentum. At last count, only 42.3 million shares were tendered, less than 2% of WBD’s outstanding shares, suggesting many investors may still be waiting for an even bigger offer before making a move.

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Do you think Warner Bros. Discovery should stick with Netflix or gamble on Paramount Skydance for a bigger payout? Let us know in the comments.