Warner Bros Discovery Considers Revived Paramount Sale Discussions
- tech360.tv
- 3 hours ago
- 2 min read
Warner Bros Discovery is considering reopening sale talks with rival Hollywood studio Paramount Skydance. This comes after receiving Paramount's most recent amended offer.
The Warner Bros Discovery board is discussing whether Paramount could offer a path to a superior deal. The board has not decided how to respond and may maintain its current agreement with Netflix.
Paramount enhanced its Warner Bros Discovery bid last week. It offered shareholders extra cash for each quarter the deal fails to close after this year.
Paramount also agreed to cover the breakup fee Warner Bros Discovery would owe Netflix if it ended the current agreement. The CBS owner did not raise its per-share offer.
Paramount offered shareholders a 25-cent-per-share quarterly "ticking fee" of approximately USD 650 million in cash. This fee would begin in 2027 and continue until the deal closes.
It also agreed to cover Warner Bros Discovery’s USD 2.8 billion breakup fee to Netflix. However, Paramount did not increase its USD 30-per-share offer, which values the deal at USD 108.4 billion including debt.
Netflix and Paramount both desire Warner Bros Discovery for its leading film and television studios, its extensive content library, and major franchises. These franchises include "Game of Thrones," "Harry Potter," and DC Comics superheroes Batman and Superman.
Activist investor Ancora Holdings, which built a nearly USD 200 million stake, stated last week its plan to oppose the Netflix deal. The firm argues the board did not sufficiently engage with Paramount over its rival bid, which includes cable assets such as CNN and TNT.
Warner Bros Discovery is considering reopening sale talks with Paramount Skydance.
Paramount's enhanced offer includes a quarterly "ticking fee" of approximately USD 650 million, starting in 2027, and coverage of Warner Bros Discovery's USD 2.8 billion breakup fee to Netflix.
Paramount did not raise its USD 30-per-share offer, valuing the deal at USD 108.4 billion including debt.
Source: REUTERS
