Warner Bros. Discovery Evaluates Paramount Skydance's $110.9 Billion Offer Amid Netflix's $82.7 Billion Bid
Warner Bros. Discovery has announced that Paramount Skydance has made a superior all-cash offer of $110.9 billion for the entire company, surpassing Netflix's $82.7 billion offer. Warner Bros. Discovery has given Netflix four days to respond with a counteroffer before making a final decision. The board continues to recommend the Netflix transaction until a final determination is made.
Paramount's proposal includes a purchase price of $31 per share in cash, with additional fees and obligations. The new deal excludes the performance of WBD's pending Global Linear Networks TV segment spin-off. Financial advisors and legal counsel are assisting Warner Bros. Discovery in evaluating the offers.
In a public letter, Warner Bros. Discovery's board formally stated that Paramount Skydance's previous takeover bid was inferior to Netflix's offer. The board acknowledged receipt of Paramount's hostile offer and committed to reviewing it as part of their fiduciary duties. Netflix's co-CEO expressed skepticism about Paramount's bid, citing reliance on debt and Larry Ellison's involvement.
Despite public encouragement for Paramount to increase its offer, the CEO reiterated the original bid in a filing. Shareholders are awaiting a final decision from Warner Bros. Discovery regarding the competing offers.