Warner Bros. Discovery is reopening discussions with Paramount, owned by Skydance, to consider their final offer. This move comes as Warner Bros. Discovery remains committed to its agreement with Netflix for a studio and streaming deal. The company has been granted a waiver by Netflix to engage in talks with Paramount for the next seven days to address any outstanding issues and clarify terms of Paramount’s latest proposal. Should Netflix choose, they have the option to match Paramount’s offer as part of the merger terms.
Warner Bros. has previously turned down multiple bids from Paramount, including a hostile bid in December. The company’s leadership reiterated their support for the Netflix merger, stating that they have not found Paramount’s proposal to be superior. The current engagement with Paramount represents a shift for Warner Bros., as Paramount had previously expressed disappointment in the lack of meaningful engagement before the Netflix merger announcement.
Netflix reaffirmed its confidence in the deal with Warner Bros., emphasizing the superior value and certainty it provides. Paramount deemed Warner’s recent actions as unusual but expressed willingness to engage in constructive discussions. Paramount continues to pursue its tender offer of $30 US per share, asserting that it is a better offer than Netflix’s proposal and indicating readiness for a proxy fight.
Unlike Netflix, Paramount aims to acquire the entirety of Warner’s assets, including networks like CNN and Discovery. In December, Paramount made an all-cash offer of $77.9 billion US, with an enterprise value of $108 billion US including debt. Warner disclosed that Paramount intends to raise its offer to $31 per share pending further discussions.
Both companies are vying for ownership of Warner’s vast film and television library, featuring iconic titles like “Casablanca” and “Citizen Kane,” as well as popular HBO shows like “Game of Thrones.” The potential acquisition has stirred industry concerns and will be subject to regulatory approval. Warner Bros. has a shareholder vote scheduled for March 20 on the Netflix merger, and a special meeting set for Friday. Share prices for Warner Bros., Paramount Skydance, and Netflix experienced positive movements following these developments.