Warner Bros. Discovery Reopens Paramount Talks After Sweetened Offer
The media company received a seven-day waiver from Netflix to review Paramount’s improved takeover proposal
NEW YORK — Warner Bros. Discovery has reopened takeover discussions with Paramount Global after the rival bidder improved its proposal, adding new uncertainty to the company’s previously agreed deal with Netflix.
The company said it received a seven-day waiver from Netflix allowing it to engage with Paramount to address concerns raised during earlier negotiations. Warner Bros. Discovery’s board continues to recommend the Netflix transaction.
According to a report by The Wall Street Journal, Paramount recently increased its all-cash bid to make the proposal more competitive. The revised terms include financial protections aimed at reducing risk for Warner shareholders.
Among the changes, Paramount has indicated it would cover Warner’s breakup fee owed to Netflix if the company ultimately walks away from the existing agreement. The proposal also includes a potential “ticking fee” that would compensate shareholders if regulatory approval delays closing.
Warner Bros. Discovery has not said it plans to abandon the Netflix deal, but the decision to re-engage suggests the board believes Paramount’s updated offer warrants further review.
The renewed talks come amid mounting investor scrutiny. Some shareholders and activist investors have urged the company to evaluate competing bids fully, arguing a higher offer could deliver greater value.
For now, the Netflix agreement remains in place, and the streaming company retains certain contractual protections, including the ability to respond to competing proposals.
Warner Bros. Discovery said Paramount has roughly one week to clarify and potentially improve its bid. The outcome could determine whether the company proceeds with Netflix or reopens a broader bidding contest.
— REAVES // @wildreaves