Warner Bros. Discovery (WBD) has reopened acquisition talks with Paramount Skydance and given it seven days to submit a “best and final” offer that could surpass Netflix’s existing merger agreement.
Paramount’s revised bid is reported at up to $31 per share and would also cover the breakup fee would owe Netflix and other incentives – potentially reigniting a takeover contest.
On Tuesday, WBD said it would give Paramount until 23 February to submit its “best and final offer”.
“To be clear, our board has not determined that your proposal is reasonably likely to result in a transaction that is superior to the Netflix merger,” said WBD chair Samuel DiPiazza Jr and chief executive, David Zaslav, in a letter sent to the Paramount board.
Meanwhile, Paramount is actively trying to persuade influential shareholders and even prepare for a proxy fight to install directors on WBD’s board. It argues its higher cash bid and broader asset inclusion make its proposal superior, and claims regulatory approval could be easier than Netflix’s plan. Activist investor Ancora has publicly opposed the Netflix deal and backed Paramount’s bid.
In response to Paramount’s manoeuvres, Netflix executives have publicly criticised what they describe as Paramount’s “antics,” stressing confidence in their transaction’s value and certainty. Netflix emphasises its merger agreement remains the recommended path for WBD shareholders, with its offer for the studio and streaming assets valued around US$82.7bn (excluding certain cable networks).
