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Eighth time may be the charm for Paramount Skydance. A new report at Bloomberg claims that Warner Bros Discovery Inc. is considering reopening sale talks with Paramount Skydance Corp. following the their most recent amended offer in their hostile takeover attempts.
The trade says members of the studio’s board are discussing whether Paramount could offer a path to a superior deal – a move that could ignite a second bidding war with Netflix.
The board reportedly still hasn’t decided as yet how to respond and may stick with the company’s current deal with Netflix, according to the trades’ sources. There’s also the obvious question as to whether this is just part of a negotiating tactic with the board attempting to get Netflix to up its bid.
Both Paramount and Netflix have previously indicated they would be willing to raise their bids in order to secure a deal for Warners, even as it has led to a backlash – Netflix shares have declined more than 40% since June.
Paramount submitted its amended terms last week, which indicated it will cover a $2.8 billion fee owed to Netflix if Warner Bros. terminates its agreement, along with offering to backstop a Warner Bros. debt refinancing and compensate shareholders if the deal doesn’t close by the end of this year.
To re-engage with Paramount, Warner Bros. would need to notify Netflix first and then try to get Paramount to increase its offer beyond $30 a share. Then, if Warners decides Paramount’s new offer was superior, Netflix would have the right to match it.
The post Warners Now Reconsidering Paramount Offer? appeared first on Dark Horizons.
