Paramount has upped its offer for Warner Bros. Discovery to $31 a share, above its previous offer of $30 per share.
Warner Bros. Discovery said the board has not yet made a determination as to whether the offer is superior to Netflix’s but says it could reasonably be expected” to lead to a “company superior proposal.” Netflix has offered $27.75 per share for the company’s streaming and film assets.
The revised proposal from Paramount includes an increased purchase price of $31.00 per WBD share in cash, plus a daily ticking fee payable to shareholders equal to $0.25 per quarter beginning after Sept. 30, 2026, as well as a $7 billion regulatory termination in the event the transaction does not close due to regulatory matters. Paramount has also agreed to pay the $2.8 billion termination fee that WBD would be required to pay to Netflix to terminate the existing merger agreement.
The ticking fee schedule was originally slated to start Dec. 31, and the $7 billion fee is also a new addition.
If the WBD board determines that Paramount’s offer is a “Company Superior Proposal,” Netflix will have four business days after such determination to negotiate with WBD and to propose any revisions to its bid.
Paramount has been launching hostile takeover bid directly with shareholders in its effort to undo the previously agreed $82.7 billion Netflix deal. That deal was first unveiled in December and amended into an all-cash bid in late January. Warner Bros. board members had given Paramount a deadline of early this week for a revised best and final bid.
Earlier this morning, Warner Bros. had said its board, along with financial and legal advisors were reviewing Paramount’s latest new offer, but did not reveal exact details of the bid.
More to come.
