Warner Bros. Discovery reopens bidding, gives Paramount seven days to make its case

by

Warner Bros. Discovery is willing to hear from Paramount Skydance, despite previously rejecting their offer. However, the company’s board still favors a deal with Netflix.

Warner Bros. Discovery is revisiting negotiations after facing weeks of pressure from Paramount Global, which recently made a higher offer to acquire the company. This increased offer from Paramount caught the interest of some Warner Bros. Discovery shareholders.

Warner Bros. Discovery sent a letter to Paramount’s David Ellison and the rest of the board on Tuesday, asking them to explain their offer within a week.

Warner’s board asked Paramount for their absolute best offer, and gave them until February 23rd to submit it.

The sale of Warner Bros., a legendary Hollywood studio behind iconic shows and movies like “Batman,” “The Big Bang Theory,” “Casablanca,” “Game of Thrones,” and “Succession,” is predicted to significantly change the entertainment industry.

As Warner Bros. Discovery and Netflix near the end of the bidding process, things are rapidly accelerating. Warner Bros. Discovery has also officially announced its shareholder vote, scheduling a special meeting for March 20th to determine the company’s future.

Warner Bros. Discovery is asking its shareholders to vote in favor of the proposed $82.7 billion merger with Netflix.

Warner Bros. Discovery remains confident that merging with Netflix would benefit its shareholders. Chairman Samuel A. Di Piazza, Jr. stated on Tuesday that the deal offers significant value, has a good chance of being approved by regulators, and includes safeguards to protect shareholders if things don’t go as planned.

Hollywood Inc.

Netflix amends Warner Bros. deal to all cash in bidding war

Still, the maneuver essentially reopens the talks.

Warner Bros. is unintentionally giving Paramount a chance to influence its board members. This could lead Netflix to increase its current offer of $27.75 per share for Warner Bros.’ studios, its extensive content library, HBO, and the HBO Max streaming service.

Netflix has no plans to purchase Warner Bros. Discovery’s group of basic cable channels – like CNN, TBS, HGTV, and Animal Planet – which the company is preparing to separate into its own independent business later this year.

In contrast, Paramount wants to buy the entire company and has offered more than $30 a share.

Hollywood Inc.

Netflix is reportedly interested in acquiring Warner Bros. and HBO, but Paramount is also making a competing offer to buy them, even though their initial approach was rejected. Here’s a look at how things have unfolded.

Paramount recently increased its offer to buy Warner, adding a $2.8 billion penalty that Warner would owe to Netflix if they decided to end the agreement. Paramount also promised to pay Warner shareholders 25 cents per share for each quarter the deal isn’t finalized, starting January 1st.

Paramount stated last week that, despite their efforts to offer helpful solutions, some details still need further discussion and collaboration to be finalized. They are committed to working together to improve these solutions and fully address any remaining concerns.

Hollywood Inc.

Larry Ellison, a major figure in the tech world, attempted to buy Warner Bros. Discovery, but Netflix won the deal. This has led to a potential legal battle that could significantly impact the future of the entertainment industry.

Netflix has temporarily adjusted its merger deal with Warner Bros. Discovery so Warner Bros. Discovery can explore a potential deal with Paramount, after Paramount lost out on a previous bid on December 4th.

As a film and TV fan, I’ve been following this whole situation closely, and it’s pretty interesting. Basically, Netflix gave Warner Bros. Discovery a short grace period – just seven days – to try and sort things out with PSKY. They did this as part of their existing merger agreement. But Netflix is making it very clear that they still have the only official, board-approved deal on the table, and they believe it’s the only way to really benefit Warner Bros. Discovery’s shareholders.

Netflix has the right to match any better offer Paramount receives. They also expressed renewed optimism about their agreement and believe it will be approved by regulators.

Netflix stated that PSKY is falsely portraying the regulatory review process, leading Warner Bros. Discovery (WBD) stockholders to believe their proposal will be easily approved, despite significant regulatory hurdles globally. Netflix emphasized that PSKY does not have a simpler or quicker path to approval than other companies.

Warner Bros. Discovery confirmed that Paramount’s recent changes have resolved some of the issues they raised several months prior, as stated in a letter to Paramount.

Warner Bros. Discovery stated that Paramount’s latest offer still included problematic terms and conditions that their board had already rejected twice.

Hollywood Inc.

A group representing movie theater owners quickly criticized Netflix’s almost $83 billion agreement to acquire Warner Bros. and HBO. Netflix has historically avoided traditional movie theaters, choosing to release films directly on its streaming service instead.

Warner Bros. Discovery’s board informed Paramount that they are open to discussions during the next seven days.

Paramount has been pursuing the prized assets since last September.

David Zaslav, CEO of Warner, stated that they’ve consistently communicated the weaknesses in PSKY’s offers and given them chances to improve. They are currently in discussions with PSKY to see if they can present a firm proposal that would benefit Warner Bros. Discovery shareholders more than their current options.

Read More

2026-02-17 15:31