Warner Bros. Discovery agreed to a seven-day window of deal talks with Paramount Skydance, after Paramount signaled it would raise its bid from $30 to $31 per share – or higher – if WBD reopens negotiations despite its existing agreement with Netflix. In a letter released Tuesday, WBD said a senior representative of its financial adviser told a board member on February 11 that PSKY would pay $31 per share and that the offer was “not PSKY’s best and final proposal.” Still, WBD made clear its board has not concluded Paramount’s proposal is likely superior to the Netflix merger and remains committed to that deal. Shareholders are set to vote on the Netflix merger at a special meeting on March 20.
WBD board chair Samuel A Di Piazza, Jr. and CEO David Zaslav wrote in the letter, “During this seven-day period – as we consistently did during the strategic review process last year – we welcome the opportunity to engage with you and expeditiously determine whether PSKY can deliver an actionable, binding proposal that provides superior value, transaction certainty and interim protection for WBD’s businesses to Warner Bros. Discovery shareholders.”
The WBD/Paramount talks were okayed by Netflix, which noted “ongoing distraction for WBD stockholders and the broader entertainment industry.” Netflix granted WBD a seven-day waiver of certain obligations under their merger agreement to allow the company to engage with Paramount Skydance to “fully and finally resolve this matter.”
PSKY’s response? Paramount stated that while the WBD board’s actions are unusual, it remains willing to engage in constructive, good-faith discussions. “At the same time,” the company added, “we will continue to advance our tender offer, maintain our solicitation in opposition to the inferior Netflix merger, and proceed with our intention to nominate a slate of directors at the…
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