Warner Bros. Discovery (WBD) revealed that Paramount has significantly increased its offer to $31 per share, an improvement from its previous $30 per share bid. This revised proposal is being evaluated against a competing offer from Netflix for WBD's valuable movie studios and streaming businesses.
WBD stated that Paramount's new offer "could reasonably be expected to lead to a ‘Company Superior Proposal.’" Under the updated terms, Paramount would also assume the $7 billion regulatory termination fee associated with a failed merger due to antitrust concerns. Additionally, Paramount proposes to pay $0.25 per share for each day the deal remains unsigned past September 30, a shift from the original December 31 deadline.
This development follows Paramount's earlier agreement to cover a $2.8 billion termination fee if WBD were to abandon a potential merger with Netflix. Netflix's current offer stands at $27.75 per share, focusing solely on WBD's film studios, intellectual property, HBO, and streaming services like HBO Max, excluding other cable channels.
WBD's board has yet to make a definitive decision on whether Paramount's enhanced offer is superior to Netflix's. Should the board deem Paramount's bid the better option, Netflix will be granted a four-day window to submit a more competitive proposal.
It remains uncertain if Netflix is prepared to increase its offer for WBD's assets. The streaming giant, known for its disciplined acquisition approach, has not yet commented on Paramount's latest move. WBD's future ownership is anticipated to face significant regulatory scrutiny, potentially leading to increased subscription prices and lasting changes within the Hollywood landscape.