LOS ANGELES (CNS) – Warner Bros. Discovery is reviewing a new bid by Paramount Skydance to buy the media giant in a bidding war with Netflix, the company said Tuesday.
Last week, the WBD Board of Directors gave PSKY until Feb. 23 to submit its “best and final proposal,” while making clear that the board continued to favor the Netflix $82.7-billion, all-cash proposal.
The amount of the latest offer was not revealed, but it is believed to be higher than Paramount’s previous bid of $30 per share in cash.
“Following engagement with PSKY during the seven-day limited waiver period, we received a revised PSKY proposal to acquire WBD, which we are reviewing in consultation with our financial and legal advisors,” WBD said in a statement Tuesday. “We will update our shareholders following the Board’s review. The Netflix merger agreement remains in effect, and the Board continues to recommend in favor of the Netflix transaction. WBD shareholders are advised not to take any action at this time with respect to the amended PSKY tender offer.”
Netflix and Paramount have been jockeying for months over the sale of Warner Bros. Discovery’s studios and HBO Max streaming business in a deal closely watched throughout the entertainment industry.
Netflix’s offer is to purchase WBD but not all of its cable channels, while PSKY wants to buy the whole company. Warner is planning to spin off its cable channels into a separate company.
While the WBD Board of Directors considers Paramount’s revised proposal, Paramount will continue to maintain its previously announced tender offer and its solicitation in opposition to the Netflix merger.
Paramount previously added a $2.8 billion fee that Warner would have to pay Netflix if the company pulled the plug on that deal. Paramount also added an offer to pay Warner investors 25 cents a share for every quarter after Jan. 1 that the deal does not close.
If the WBD board decides that the final Paramount offer is superior, Netflix will have four days to answer with an improved bid of its own.
WBD has called a March 20 meeting of its shareholders to decide the matter.
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