Warner Bros. Discovery Reconsiders Paramount Sale After Enhanced Offer
Warner Bros. Discovery is now reportedly reconsidering whether to reopen sale talks with Paramount Skydance after receiving an amended offer which addresses earlier concerns. According to Bloomberg, Paramount's latest proposal includes covering the $2.8 billion fee owed to Netflix if Warner Bros. terminates its current agreement, backstopping debt financing, and compensating shareholders if the deal fails to close by year-end.
Revised Terms and Shareholder Pressure
Warner Bros. Discovery had previously agreed to sell its Studio and HBO Max streaming business to Netflix in a deal valued at $27.75 per share. However, Paramount has countered with a $30-per-share tender offer, appealing directly to shareholders and regulators. The Warner Bros. board has not yet decided how to respond, but discussions suggest Paramount's bid could reignite a second bidding war.
Many Warner Bros. shareholders, including Ancora Holdings Group and Pentawater Capital Management, have publicly urged the board to engage in talks with Paramount. While only a small fraction of shares have been tendered to Paramount so far, investor sentiment is pushing Warner Bros. to at least consider the rival offer.
CEO Statements and Strategic Enhancements
Paramount CEO David Ellison commented on the new Warner Bros. Discovery offer, stating that the additions to Paramount's bid "underscore our strong and unwavering commitment to delivering the full value Warner Bros. Discovery shareholders deserve for their investment."
Ellison elaborated in a statement: "We are making meaningful enhancements — backing this offer with billions of dollars, providing shareholders with certainty in value, a clear regulatory path, and protection against market volatility."
Bidding War Dynamics and Market Context
Both Paramount and Netflix have signaled willingness to raise their bids. Paramount CEO David Ellison has indicated the current offer is not final, while Netflix leadership has told shareholders it could go higher. However, both companies remain cautious about overspending, especially as Netflix shares have fallen more than 40% from their June peak amid investor concerns about the Warner Bros. deal.
The renewed discussions highlight the competitive landscape in the streaming and entertainment industry, where major players are seeking strategic acquisitions to strengthen their market positions. The outcome of these negotiations could significantly impact the future structure of media conglomerates and streaming services.
