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- Warner Bros. Discovery’s board said it thinks Paramount’s latest offer is better than Netflix’s.
- Paramount raised its bid to $31 per share for all of WBD on Tuesday morning.
- Netflix must decide whether it’s willing to offer more for the Warner Bros. studio and HBO assets.
Paramount Skydance may finally have the upper hand on Netflix in the bidding war for Warner Bros. Discovery.
The WBD board announced on Thursday afternoon that it believes Paramount’s offer to buy the entire company for $31 per share is better than Netflix’s proposal to buy its streaming and studio assets for $27.75 per share. Both offers are all cash.
Paramount’s bid also includes a so-called “ticking fee,” which will pay WBD shareholders $0.25 per share, or about $650 million, for every quarter that its deal doesn’t get regulatory approval, starting on September 30.
Netflix now has four business days to raise its bid, if it chooses. It could also decide to walk away and collect a $2.8 billion breakup fee from WBD, which Paramount has said it will cover.
If Netflix doesn’t improve its offer, WBD’s board will formally change its recommendation and kill its Netflix deal.
WBD shareholders will vote on March 20 to approve the transaction with the highest bidder.
This story is developing and will be updated.
Read the full article here
