Netflix Grants Seven-Day Review as Paramount Increases WBD Bid to $31
Netflix has granted Warner Bros. Discovery’s board a seven-day window to review its acquisition proposal after Paramount and Skydance raised their bid to $31 per share and agreed to a $2.8 billion termination fee. Market-implied odds for Netflix closing a deal by year-end have dropped from 30% to 22%.
1. Netflix Proposal Window
Netflix has given Warner Bros. Discovery’s board a seven-day period to consider its takeover offer, signaling urgency in closing the transaction. The proposal includes terms that would trigger a $2.8 billion breakup fee if Warner Bros. declines and opts for another bidder.
2. Competing Paramount Offer
Paramount and Skydance responded by raising their previous cash offer from $30 to $31 per share and reaffirmed willingness to pay the full termination fee if the deal fails. This enhanced bid aims to sway Warner Bros. shareholders and management back to their side of the table.
3. Shifting Deal Probabilities
Investors have adjusted expectations, driving market-implied odds for Netflix completing the transaction by year-end down from 30% to 22%. The decline reflects growing skepticism that Netflix can outbid Paramount and secure shareholder approval amid escalating counteroffers.