As PWMania.com previously reported, Warner Bros. Discovery (WBD) announced last Tuesday, February 17th, that it is re-opening negotiations with Paramount Skydance, giving them seven days to present their “best and final offer.” This follows Paramount’s ongoing hostile bid to acquire WBD, which recently signed an $82.7 billion deal to be acquired by Netflix.
Reports indicate that Netflix granted a waiver allowing WBD to discuss matters with Paramount over the previous week.
According to NBC News, Paramount has raised its offer from $30 per share to $31 per share.
This enhanced proposal is making WBD consider it more seriously. The report also indicates that Paramount’s new offer exceeds Netflix’s $ 27.75-per-share proposal, although Netflix’s deal does not include WBD’s networks, which would be spun off into a separate company.
WBD issued a press release stating that Paramount Skydance’s bid might be more attractive than Netflix’s. However, they are not changing their current recommendation in favor of the Netflix deal, which remains active for the time being.
They acknowledged that Paramount’s offer could potentially lead to a “superior proposal” and plan to engage further with Paramount to explore this possibility.
In addition to the increased price, the updated Paramount offer features several additional incentives. It includes a “daily ticking fee” of $0.25 per share per quarter, which would begin after September 30, 2026. This fee represents additional compensation to WBD if the deal is not finalized by that date.
Furthermore, it includes a $7 billion fee payable to WBD if the transaction fails to close due to regulatory issues, as well as a $2.8 billion termination fee that WBD would have to pay to Netflix to exit the existing agreement.
It’s important to note that even if WBD accepts Paramount’s new offer as superior, the situation is not resolved. Netflix would have four days to make a counteroffer following any determination made by WBD. While it is unclear whether Netflix will take this step, sources indicate it is capable of making a new proposal.
Netflix co-CEO Ted Sarandos told Variety over the weekend that they prefer not to act prematurely and emphasized that Netflix is known for its disciplined approach to acquisitions, meaning they are willing to walk away rather than overpay for an asset.
In response to WBD’s announcement, Paramount released a statement expressing its appreciation for the WBD board’s assessment and indicated its eagerness to continue engaging constructively to deliver the benefits of its proposal to WBD shareholders, as well as the creative community and consumers.
