Warner Bros Discovery has rejected Paramount Skydance’s latest $30-a-share hostile bid, but gave the rival Hollywood studio seven days to submit a “best and final” offer to top an existing agreement to sell its businesses including HBO Max and “Harry Potter” franchise to Netflix.
Paramount informally broached an even higher per-share price of $31, Warner Bros said, apparently enticing the board to the table. But its response to Paramount indicates Warner Bros prefers its deal with Netflix, and the odds of a switch are long.
Warner Bros Discovery’s shares were up 3.4% at $28.93, while Paramount rose nearly 5%. Netflix shares were largely flat in afternoon trading.
Despite the temporary reopening of talks, the Warner Bros. Discovery board said it continues to unanimously support the Netflix transaction. Directors also urged shareholders to reject Paramount Skydance’s tender offer, citing unresolved issues in amended deal documents filed with regulators.
According to the company, a senior Paramount representative recently indicated a willingness to pay $31 per share and suggested that figure was not its highest bid. However, Warner Bros. Discovery said that price and other verbal assurances were not reflected in the latest written merger draft submitted by Paramount
Paramount has pursued Warner Bros. since September, initially prompting the media company to explore strategic alternatives. After losing out to Netflix, Paramount launched a hostile tender offer at $30 per share and later raised its proposal.
On February 11, Paramount increased its $30-per-share cash offer and introduced a ticking fee, which would add an extra $0.25 per share in cash for WBD investors. Paramount said this would amount to about $650 million in additional cash for each quarter the deal remains unfinished after Dec. 31, 2026.
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