Warner Bros. Discovery Plans Talks with Paramount Skydance

The Warner Bros. Discovery (WBD) board is considering talks with Paramount Skydance about a new offer to buy the company. This follows Paramount’s recent deal worth $83 billion with Netflix made in December.

Paramount Skydance has made its ninth offer, which includes a special fee of around $650 million for WBD shareholders. This fee applies for every quarter until the deal is completed by December 31, 2026. The latest proposal was shared with WBD and investors on February 10. Bloomberg News was the first to report on this.

WBD’s board quickly rejected this new proposal, saying it does not affect the current Netflix agreement. However, the sale of the famous studio and HBO has attracted a lot of attention from investors and media. If the WBD board reconsiders Paramount’s offer, it shows they are doing their job to look at all reasonable proposals.

WBD plans to discuss the Paramount Skydance offer and set a date for its financial report soon after Monday’s holiday. Investors are also waiting for the date of a special vote on the Netflix deal. It is unclear if the new offer will change WBD’s voting plans. Netflix has the right to match any better offer before the deal is finished.

No comments have been made by WBD, Paramount Skydance, or Netflix. A source says that WBD wants Paramount Skydance to confirm its final offer, giving shareholders a clear choice. The situation is complex, as Netflix’s deal involves Warner Bros. and HBO Max, while Paramount Skydance wants to buy all of WBD’s assets, including many cable channels.

The WBD-Netflix transaction will likely face strict checks from regulators in Washington due to Netflix’s strong position in the market. WBD might also deal with concerns from some investors who are questioning the Netflix agreement.