Bidding battle for Warner Bros. Discovery continues
Warner Bros. Discovery has rejected the latest hostile $30-per-share bid from Paramount Skydance, but granted the rival seven days to submit a “best and final” offer. The company continues to favor its existing agreement with Netflix, which covers parts of the business including HBO Max and the “Harry Potter” franchise. Although Paramount informally indicated a possible increase to $31 per share, the board has not deemed the proposal superior. Paramount has until February 23 to improve its bid, and Netflix retains the right to match any new offer.
Tough bidding battle
The bidding battle highlights the strategic value of Warner Bros., including its film and TV studios and extensive library featuring classics such as “Casablanca,” “Citizen Kane,” “Friends,” and “Batman.” Paramount values the entire company at $108.4 billion, while Netflix is offering $27.75 per share, or $82.7 billion, for the studio and streaming businesses. Shareholders are set to vote on the Netflix deal on March 20. Prior to that, Warner Bros. plans to spin off its cable operations (including CNN, TLC, Food Network, and HGTV) into a separate publicly traded company.
Calling for deeper negotiations
Paramount criticized the board’s actions as unusual and intends to continue pursuing its bid while nominating its own board candidates. Investors such as Ancora Holdings and Pentwater Capital have supported Paramount’s efforts and called for deeper negotiations. However, financing questions—particularly regarding equity and debt commitments and potential fees—remain unresolved. Any transaction is also expected to face close regulatory scrutiny, including review by the United States Department of Justice.