Warner Bros. Discovery may resume talks with Paramount Skydance over an offer to cover Netflix's $2.8 billion penalty. This comes after Paramount approached investors with a $30 per share offer.
Warner Bros. Discovery is exploring the possibility of re-engaging in dialogue with Paramount Skydance after receiving more favorable terms, which include covering a $2.8 billion penalty to Netflix. The board of directors is evaluating whether this offer will be a better alternative to the already signed agreement with the streaming giant. This is reported by Bloomberg, writes UNN.
Details
The revised offer from Paramount Skydance includes a number of significant financial commitments aimed at mitigating risks for Warner Bros. In particular, the company is ready to cover penalties of $2.8 billion in case of termination of the contract with Netflix, and also offers support in refinancing the studio's debts.
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In addition, Paramount expressed confidence in quickly obtaining regulatory approvals, promising to compensate shareholders for losses if the deal is not closed by the end of 2026.
Confrontation with Netflix and pressure from shareholders
The situation is complicated by the fact that Warner Bros. already has obligations to Netflix regarding the sale of its film studios and the HBO Max platform at a price of $27.75 per share.
However, Paramount is trying to seize the initiative by directly approaching investors with a tender offer of $30 per share.
The WBD board of directors views this step not only as a path to an alternative deal, but also as a tool to pressure Netflix to raise their initial bid. The final decision will depend on the shareholders' vote and the subsequent reaction of antitrust authorities to the possible creation of a new media conglomerate.
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