Warner Bros. Discovery Receives New Acquisition Offer from Paramount
Warner did not disclose the details of the offer, but last week gave the hostile acquirer 7 days to submit the "best and final" acquisition proposal.
Author: Joe Flint
Warner Bros. Discovery said on Tuesday that it had received a new all-cash acquisition offer from Paramount, but did not disclose specific details.
Warner stated that it is evaluating the offer. The board will determine whether it is superior to the acquisition agreement already signed with Netflix, which plans to acquire Warner's core film production company and HBO Max streaming service.
According to the terms of the Netflix acquisition agreement, if Warner accepts Paramount's offer, Netflix has the right to match the offer and has four days to submit a new bid.
Warner stated: "The merger agreement with Netflix remains in effect, and the board continues to recommend that shareholders support the transaction with Netflix." At the same time, shareholders are reminded that "no action is required at this stage regarding the revised Paramount offer."
Last week, Warner resumed negotiations with Paramount, giving the hostile acquirer a 7-day window to submit the "best and final" bid.
A Paramount spokesperson confirmed that a new offer had been submitted but refused to provide further details.
It is expected that Warner will provide shareholders with details of Paramount's new offer in the coming days. Paramount is scheduled to release its latest financial report on Wednesday, and Warner on Thursday.
Paramount, led by David Ellison, previously offered $30 per share, with an overall valuation of $77.9 billion, including cable networks such as CNN and TNT.
Netflix's offer for the film division and HBO Max is $27.75 per share, totaling $72 billion.
Netflix is not interested in the cable network assets; Warner is spinning off this part of the business into an independent company called "Discovery Global." Under the deal, Netflix will acquire Warner's Turner Classic Movies channel.
After Paramount revised its acquisition proposal, Warner resumed negotiations: Paramount pledged to assume the $2.8 billion breakup fee Warner would owe Netflix if the deal falls through, and added a new $0.25 per share quarterly "installment penalty" starting January 2027, payable to Warner shareholders if the transaction is not completed on time.
Netflix has agreed to Warner's decision to grant Paramount a new negotiation window, stating that its own offer remains the best and hoping to quell the "ongoing disruption" caused by Paramount's repeated interference with the deal.
Last week, Netflix also launched a public relations offensive against Paramount. Co-CEO Ted Sarandos gave multiple media interviews explaining why its offer is more favorable to Warner shareholders and the entertainment industry as a whole.
Editor: Guo Mingyu
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
AI demand drives TSMC to accelerate capacity expansion, 2nm monthly production aims for 120,000 wafers by year-end
According to reports, industry giants such as Apple, Nvidia, and AMD have collectively increased their orders by 10% to 20%, directly boosting TSMC's 2nm monthly production capacity to 120,000 wafers by the end of the year, which exceeds the previous estimate by more than 20% and brings forward the 2027 target by two years. For the first time in history, five factories will ramp up production simultaneously, and the annual compound growth rate of capacity from 2026 to 2028 will reach as high as 70%.
Long-term US Treasury Sell-off Continues! 10-Year Treasury Yield Breaks 5.2% Again, “AI Boom vs. Rising Financing Costs” Narrative Showdown Intensifies
On Monday, oil prices rose and US Treasury bonds were sold off again as former US President Donald Trump rejected Iran's latest proposal to reopen the Strait of Hormuz, heightening concerns about inflation.
Banks Have Been Earning Effortlessly from Idle Funds for Years—Will AI Agents Change Everything?
For years, banks have profited from customers' idle funds, but AI agents may be about to change this situation.
Goldman Sachs: US stocks are showing a "strong index, weak confidence" pattern; catch-up rally may become the main theme of the next phase
Goldman Sachs stated that the current U.S. stock market is showing an unusual pattern: while index performance is strong, investor confidence remains weak. This suggests that the market still has further upside potential, and stocks that previously lagged behind leading AI stocks may soon experience a catch-up rally.
Crypto prices
More
