Paramount’s New Bid Gains Favor with Warner Bros. Board, Details Unveiled
Paramount has enhanced its proposal for Warner Bros. Discovery (WBD) to $31 per share, surpassing its previous offer of $30. The Warner Bros. board has yet to decide if this offer is superior to Netflix’s bid.
Details of Paramount’s New Bid
The latest offer from Paramount includes significant financial incentives. Not only does it increase the purchase price to $31 per share in cash, but it also proposes:
- A daily ticking fee of $0.25 per quarter starting after September 30, 2026.
- A $7 billion regulatory termination fee if the acquisition fails due to regulatory hurdles.
This termination fee has increased from a previously proposed $5.8 billion. Paramount has also committed to cover a $2.8 billion fee that Warner Bros. would owe to Netflix to disconnect from its existing merger agreement.
Competitive Context
Netflix has proposed $27.75 per share for WBD’s streaming and film assets, valuing the deal at approximately $82.7 billion. Paramount’s revised offer aims to pressure Netflix, showcasing confidence in overcoming regulatory challenges. Despite this, conversations between the companies continue, indicating that this may not be Paramount’s final offer.
Implications for Warner Bros. Discovery
If Warner Bros. determines that Paramount’s offer qualifies as a “Company Superior Proposal,” Netflix will have four business days to revise its bid. Currently, WBD plans to have a vote on the Netflix deal by March 20, intensifying the urgency for all parties involved.
Paramount’s bid encompasses the entirety of Warner Bros., which includes key cable networks such as CNN, TBS, HGTV, and TNT. The Warner Bros. board, supported by legal and financial advisors, is reviewing Paramount’s offer, although specifics of the bid remain undisclosed.
