Warner Bros. Discovery has reopened takeover discussions with Paramount Global, backed by Skydance Media, after receiving a seven day waiver from Netflix. The move adds a new turn to the ongoing media consolidation battle.
WBD’s board continues to recommend its previously announced merger agreement with Netflix to shareholders. In a regulatory filing, WBD said the waiver allows it to address concerns in Paramount’s latest proposal. Talks are expected to continue until Monday.
Despite reopening negotiations, WBD reaffirmed support for the Netflix deal. A shareholder vote on the proposed merger is scheduled for March 20 at a special meeting. The company emphasised its commitment to the existing agreement.
Netflix’s December all cash proposal values WBD’s studio and streaming assets at 72 billion dollars, or about 83 billion dollars including debt. The company said its offer provides stronger value and greater certainty compared to competing bids.
Paramount has maintained its hostile all cash offer of 30 dollars per share. This values WBD at around 108 billion dollars including debt. The company also indicated it could raise the bid to 31 dollars per share if needed.
Analysts say WBD is now caught between competing takeover plans. A higher bid from Paramount could increase pressure on the board, especially with US Department of Justice regulatory reviews approaching. Markets reacted quickly to the news.
WBD shares rose more than 3 percent following the development. Paramount shares gained over 5 percent, while Netflix recorded modest growth. The situation highlights growing competition in the global media industry.
