Warner Bros. Discovery has decided to resume discussions with Paramount, owned by Skydance, to consider their “best and final” offer. This move comes as Warner Bros. continues to support its existing agreement with Netflix. The company, known for owning HBO Max and a vast library of popular titles such as the Harry Potter series and DC superhero franchise, disclosed that it received a waiver from Netflix to engage in talks with Paramount for seven days or until the upcoming Monday.
The purpose of these renewed discussions is to address any outstanding issues and clarify specific terms of Paramount’s latest proposal. Despite rejecting previous offers from Paramount, including a hostile bid in December, Warner Bros. reiterated its stance that the board has not found Paramount’s proposal to be superior to the Netflix merger.
In December, Netflix announced a $72 billion acquisition of Warner’s studio and streaming business in an all-cash deal, encompassing its TV and movie production arms, as well as HBO Max. The total enterprise value of the transaction, including debt, amounts to approximately $83 billion, or $27.75 per share, pending the completion of Warner’s cable operations separation.
Paramount, on the other hand, has been actively pursuing a takeover of Warner Bros., offering $30 per share in a tender offer. Paramount aims to acquire Warner’s entire business, including networks like CNN and Discovery, with a bid totaling $77.9 billion in cash. Paramount recently indicated its willingness to increase the offer to $31 per share pending further engagement.
Both companies are actively vying for ownership of Warner’s extensive film and television catalog, featuring iconic titles like Casablanca and Citizen Kane, as well as popular HBO shows like Game of Thrones>. The potential acquisition has raised concerns within the entertainment industry, and any deal will be subject to regulatory approval.
Warner Bros. is set to hold a special meeting on Friday for shareholders to vote on the Netflix merger, scheduled for March 20. Following these developments, Warner Bros. stock experienced a more than two percent increase, while Paramount Skydance saw a rise of nearly three percent, and Netflix’s stock showed a slight uptick.
