Warner Bros. Discovery’s board is reportedly reviewing the possibility of restarting sales negotiations with Paramount Skydance after receiving an improved offer with more favorable deal terms.
Last week, Paramount increased its stakes by announcing it would impose a 25-cent per share ticking fee on its offer if regulatory approval is delayed.
The offer follows Warner Bros.’ December decision to sell its film studio and HBO Max streaming service to Netflix for $27.75 per share.
Soon after, Paramount initiated a hostile takeover bid for Warner Bros., proposing $30 per share in cash and agreeing to cover a $2.8 billion termination fee owed to Netflix if the Warner Bros. deal falls through. Additionally, Paramount announced it would cut $1.5 billion in potential debt refinancing expenses.
This is the first time Warner Bros. is evaluating whether Paramount’s proposal could lead to a more favorable deal or prompt Netflix to increase its offer.
By CEO NA Editorial Staff
