Warner Bros. Discovery‘s board of directors says that it will “carefully review and consider” Paramount‘s revised bid for the company.
The company confirmed receipt of the revised tender offering Monday evening.
“Warner Bros. Discovery will review the Amended Tender Offer and advise its stockholders of the Board’s recommendation after the completion of that review,” the company said, adding that the board, “consistent with its fiduciary duties and in consultation with its independent financial and legal advisors, will carefully review and consider Paramount Skydance’s offer in accordance with the terms of Warner Bros. Discovery’s agreement with Netflix, Inc.”
Monday’s revised offer included a full backstop personally guaranteed by David Ellison’s father Larry Ellison. It also saw Paramount increase the termination fee to $5.8 billion, matching Netflix, and extending the deadline for the tender to later in January. The company is still offering to buy WBD shares at $30 per share, all cash.
The company had already rejected Paramount’s Dec. 8 tender, reaffirming its commitment to the Netflix deal. Now the board will have to decide whether to engage with Paramount, or maintain its deal with Netflix.
