“Warner Bros. Discovery Resumes Talks with Paramount Skydance”

Warner Bros. Discovery has decided to resume discussions with Paramount, which is owned by Skydance, to consider their “best and final” offer. Despite its existing commitment to a merger with Netflix and the support from the Hollywood giant, Warner Bros. Discovery has received permission from Netflix to reopen talks with Paramount for a limited period, allowing both parties to address any outstanding issues and clarify terms of Paramount’s latest bid. Paramount had previously made unsuccessful offers, including a hostile bid in December, which Warner had rejected. Warner’s leadership reaffirmed its preference for the merger with Netflix, emphasizing that no determination had been made that Paramount’s proposal would be superior. The deal with Netflix involves a $72 billion acquisition of Warner’s studio and streaming business, including HBO Max, and is valued at about $83 billion including debt. This move by Warner Bros. marks a shift in its engagement with Paramount, which had expressed dissatisfaction with the lack of meaningful engagement prior to the Netflix merger announcement. Netflix expressed confidence in its existing deal with Warner Bros., stating that it provides better value and certainty. Paramount, on the other hand, maintained its offer of $30 per share, claiming it is superior to Netflix’s proposal. Paramount aims to acquire the entirety of Warner’s company, including networks like CNN and Discovery, with a bid totaling $108 billion including debt. Paramount has also indicated a willingness to increase its offer to $31 per share pending further discussions. Both companies are competing for ownership of Warner’s vast film and television library, which includes iconic titles like “Casablanca” and “Citizen Kane,” as well as popular TV shows such as “Game of Thrones.” The outcome of this bidding war will have significant implications for the entertainment industry and will be subject to regulatory approval. Warner Bros. has a shareholder vote scheduled for March 20 regarding the Netflix merger, with a special meeting set for Friday. Stock prices for Warner Bros., Paramount Skydance, and Netflix all saw positive movement in response to these developments.