Warner Bros Discovery has reopened takeover talks with Paramount Skydance, granting its rival a one-week deadline until February 23 to submit a final offer. The move comes despite the media giant already having an agreed takeover deal with Netflix worth around 82.7 billion US dollars.
The development signals a competitive bidding war for Warner Bros Discovery's assets. The company's bosses are still advising shareholders to back the Netflix offer but have granted a seven-day waiver to explore whether Paramount can deliver superior value.
Paramount Skydance previously bid 108.4 billion dollars to acquire the entire Warner Bros Discovery business. That offer was rejected. Netflix's lower bid focuses on acquiring WBD's studio and streaming business, including its film and TV rights library and HBO Max.
Battle for Entertainment Assets
The stakes are high. Warner Bros Discovery owns the Harry Potter franchise, while Paramount Skydance controls Mission: Impossible and Star Trek. Netflix's deal is contingent on WBD completing a proposed spin-off of its cable channels, including CNN, TBS, and TNT Sports in the UK.
President and chief executive David Zaslav explained the company's strategy in a regulatory filing on Tuesday. «Throughout the entire process, our sole focus has been on maximizing value and certainty for WBD shareholders,» he stated. «Every step of the way, we have provided Paramount Skydance with clear direction on the deficiencies in their offers and opportunities to address them.»
Zaslav added: «We are engaging with Paramount Skydance now to determine whether they can deliver an actionable, binding proposal that provides superior value and certainty for WBD shareholders through their best and final offer.»
The reopening of talks allows Warner Bros Discovery to address what it calls unresolved deficiencies in Paramount's prior offers. The February 23 deadline will determine whether Paramount can present a compelling alternative to the Netflix deal.
Note: This article was created with Artificial Intelligence (AI).
