Warner Bros. Discovery Board Will Review Paramount New Takeover Offer

Warner Bros. Discovery is currently reviewing a new takeover offer from Paramount Skydance, which includes some revised financial commitments. The board of directors will carefully consider the offer before making a decision on whether to accept or reject it in relation to their existing agreement with Netflix.

Paramount Skydance recently submitted an unsolicited tender offer to acquire all outstanding shares of Warner Bros. Discovery common stock. The company has confirmed receipt of the offer and stated that the board will assess it in accordance with their agreement with Netflix.

While the board has not yet altered its recommendation regarding the Netflix Merger Agreement, they will review Paramount’s amended offer and provide a recommendation to shareholders within the next 10 business days. Shareholders are advised to refrain from taking any action at this time in response to the offer.

Paramount has enhanced its hostile takeover bid for Warner Bros. Discovery by increasing the offer to $30 per share and introducing new commitments. This includes a quarterly payment of 25 cents per share to shareholders if the acquisition is not completed by December 31, 2026, amounting to approximately $650 million in cash each quarter. Paramount has also pledged to cover the $2.8 billion termination fee owed to Netflix if their offer is accepted.

The initial agreement between Netflix and Warner Bros. Discovery was announced on December 5, with Netflix subsequently improving the deal to an all-cash offer of $27.75 per share in response to Paramount’s takeover efforts. The agreement primarily involves Warner Bros.’ studios and HBO Max, while Discovery Global, which includes assets like CNN, TBS, HGTV, and Discovery+, will be spun off as a separate entity.

As the situation continues to evolve, Warner Bros. Discovery remains focused on evaluating the competing offers and determining the best course of action for the company and its shareholders.