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Warner Bros. Discovery Weighs Final Paramount Bid
17 Feb
Summary
- Paramount has until February 23rd to submit its best and final offer.
- Netflix deal shareholder vote is scheduled for March 20th.
- Warner Bros. Discovery recommends the Netflix deal to shareholders.
Paramount shares experienced a significant jump of over 5% on Tuesday following the announcement that Warner Bros. Discovery (WBD) has reopened sale negotiations with CEO David Ellison. The board has granted Ellison until February 23rd to present his ultimate offer for the entire company.
WBD's board stated they received a limited seven-day waiver from Netflix to re-engage discussions. These talks will address outstanding deficiencies and clarify terms within Paramount's amended offer of $30 per share. However, WBD continues to advocate for Netflix's $83 billion deal and advises shareholders to reject the Paramount offer.
A special meeting for shareholders to vote on the Netflix deal is slated for March 20th at 8 a.m. ET. Warner Bros. Discovery CEO David Zaslav emphasized the company's commitment to maximizing shareholder value and certainty throughout the process.
Paramount has indicated a willingness to increase their offer to $31 per share if talks resume, though Ellison stressed this is not his final proposal. Netflix maintains its right to match any offer and believes its current deal is the sole guaranteed method for delivering value to WBD stockholders.
