Warner Bros. Discovery says Paramount made higher bid, board will weigh offer against Netflix deal

Warner Bros. Discovery on Tuesday mentioned it had obtained a higher takeover offer from Paramount Skydance and will evaluation the brand new bid beneath the phrases of its present deal with Netflix.

Final week, WBD introduced it might reengage Paramount in deal talks beneath a seven-day waiver from Netflix. WBD and Netflix have an settlement to promote the legacy media group’s studio and streaming companies to the streamer. Paramount is in search of to purchase everything of WBD.

“Following engagement with PSKY through the seven-day restricted waiver interval, we obtained a revised PSKY proposal to accumulate WBD, which we’re reviewing in session with our monetary and authorized advisors,” WBD mentioned in an announcement. “We will replace our shareholders following the Board’s evaluation. The Netflix merger settlement stays in impact, and the Board continues to suggest in favor of the Netflix transaction. WBD shareholders are suggested to not take any motion at the moment with respect to the amended PSKY tender offer.”

Paramount in an announcement confirmed it had submitted a revised bid and mentioned it will proceed with its beforehand introduced tender offer whereas the WBD board critiques each offers.

If WBD deems the brand new Paramount offer superior, Netflix will have 4 days to enhance its beforehand agreed-upon bid. Netflix agreed to accumulate WBD’s studio and streaming belongings for $27.75 per share in December, valuing the belongings round $72 billion, with a complete enterprise worth of roughly $82.7 billion.

Paramount subsequently launched a hostile tender offer to WBD shareholders for $30 per share for all of WBD, which incorporates linear cable networks akin to CNN, TBS, HGTV and TNT and digital belongings together with Bleacher Report and Home of Highlights.

If WBD concludes Paramount’s new offer is superior and Netflix does not alter its bid, Netflix will obtain a $2.8 billion breakup price. Paramount has agreed to fund that price as a part of a beforehand altered hostile bid.

A mixed Paramount-WBD would convey collectively HBO Max with Paramount+ together with merging two of the 5 largest film studios by income — Warner Bros. and Paramount Skydance Studios. It might additionally put CNN and CBS Information beneath one possession construction.

Each the Netflix-WBD deal and a possible Paramount-WBD merger would wish U.S. and European regulatory approval for completion, and each offers have raised antitrust issues amongst critics.