NEW YORK (AP) — Warner Bros. Discovery says it’s reviewing a new takeover offer from Paramount, but it continues to recommend a competing proposal from Netflix to its shareholders in the meantime.
Warner disclosed Tuesday that it had received a revised offer from Paramount after aseven-day windowto renew talks with the Skydance-owned company elapsed Monday. Paramount confirmed it had submitted this proposal, but neither provided further details on the bid. The company was widely expected to have raised its offer.
A Warner Bros. Discovery buyoutwould reshape Hollywoodand the wider media landscape — bringing HBO Max, cult-favorite titles like “Harry Potter” and, depending on who wins theNetflix v. Paramounttug-of-war, potentiallyeven CNNunder a new roof.
Paramount wants to acquire Warner Bros. in its entirety — including networkslike CNNand Discovery — and went straight to shareholders with an all-cash, $77.9 billion hostile offer just days after the Netflix deal was announced in December. Accounting for debt, that bid offered Warner stakeholders $30 per share, amounting to an enterprise value of around $108 billion.
Paramount maintained on Tuesday that its tender offer remains on the table while Warner evaluates its latest proposal.
Netflix only wants to buy Warner’s studio and streaming business for $72 billionin cash, or about $83 billion including debt. Warner’s board has repeatedly backed this deal — and on Tuesday maintained that its agreement with Netflix still stands.
A press contact for Netflix did not immediately respond to a request for comment. Warner shareholders are set to vote on the Netflix proposal on March 20.
If Warner’s board changes course and deems Paramount’s latest offer superior, Netflix would have a chance to match or revise its proposal, potentially setting the stage for a fresh bidding war. It could also choose to walk away.
Paramount, Warner and Netflix have spent the last couple of months in a heated back and forth over who has a stronger deal. But many lawmakers and entertainment trade groups have sounded the alarm along the way, warning that either buyout of all or parts of Warner’s business would only further consolidate power in an industry already run by just a few major players. Critics say that could result in job losses, less diversity in filmmaking and potentially more headaches for consumers who are facing rising costs of streaming subscriptions as is.
Combined, that raises tremendousantitrust concerns— and a Warner sale could come down to who gets the regulatory greenlight. The U.S. Department of Justice has already initiated reviews, and other countries are expected to do so.
Source: Fast Company
