Paramount Skydance has tabled an improved offer for Warner Bros Discovery in the latest twist in its blockbuster takeover battle with Netflix.

The Hollywood studio, whose films include The Godfather and Top Gun, said it has submitted a ‘revised proposal’ to the board of Warner Bros to buy the entire company.

Although neither firm provided details of the new bid, it is thought Paramount was looking to increase its offer from around £80billion to £84billion in an attempt to gatecrash the proposed takeover of Warner Bros by Netflix.

The latest bid came after Warner Bros – which has already backed a £60billion offer from Netflix for its studios and streaming assets, but not its cable TV channels – gave Paramount seven days to make its ‘best and final’ offer or walk away.

Warner Bros, the studio behind blockbusters from Casablanca and Gone With The Wind to the Harry Potter films and Barbie, said it is assessing the revised offer. 

A spokesman said the Warner Bros board still backed ‘the Netflix transaction’.

Dan Coatsworth, head of markets at broker AJ Bell, said: ‘It will have to be a particularly generous bid if Paramount stands any chance of dethroning Netflix, to whom Warner Bros has shown preference as bidder. 

'This might not be a case of the most amount of money wins. Warner Bros’ board must think about the right owner for the business longer term and there is a good argument to suggest Netflix is a better fit than Paramount, given its scale and reach.’

If Warner Bros decides to switch horses and back the improved Paramount bid, Netflix will have four days to respond with a counter-offer.

Although analysts have said their money is on Netflix to triumph, this could set the scene for a fierce bidding war. Paramount’s latest offer is higher than its previous offer, a source told Reuters yesterday.

Earlier this month, Paramount tried to sweeten the deal by offering to pay the £2billion breakup fee that Warner Bros would have to pay Netflix if it terminates the agreed deal. Its bid includes Warner’s cable TV channels such as CNN and TNT Sports and the Discovery+ streaming service.

These would be spun off under the terms of the deal with Netflix.

Ted Sarandos, chief executive of the streaming giant behind Stranger Things and Bridgerton, said the Netflix deal is superior because it would be buying parts of Warner Bros that it currently doesn’t have, including a movie studio and distribution entity.

‘Our deal is growth,’ Sarandos said.