Warner Bros Discovery has agreed to reopen negotiations with Paramount Skydance after the latter proposed raising its bid and sweetening other terms. This sets the stage for a renewed showdown with Netflix, which Warner Bros still considers its preferred bidder. The decision came after a Paramount banker indicated to a Warner Bros board member that Paramount would offer at least $US31 a share, $US1 higher than its previous offer, if negotiations resumed. Warner Bros now requires these terms in writing.
Netflix has granted the board seven days to discuss Paramount’s most recent proposal, according to a statement. Warner Bros CEO David Zaslav stated that the company’s sole focus has been on maximising value and certainty for shareholders throughout the entire process. Warner Bros clarified that the board still unanimously recommends shareholders vote in favour of its binding agreement to sell its namesake studios and HBO Max streaming business to Netflix for $US27.75 a share, approximately $US72 billion.
Paramount’s all-cash $US77.9 billion bid, backed by billionaire Larry Ellison, is for the entirety of Warner Bros, including cable TV channels like CNN and TNT, which are planned to be spun off under the Netflix deal. Warner Bros has scheduled a shareholder vote on the Netflix deal for March 20. Warner Bros Discovery is a global media and entertainment company. Paramount Skydance is another Hollywood studio seeking to acquire Warner Bros.
