Netflix Grants Waiver for Warner Talks as Paramount Eyes $31 Per Share Bid
Netflix agreed in December to acquire Warner Bros. Discovery’s studio and streaming businesses for more than $80 billion in cash. The streaming giant granted WBD a seven-day waiver to resume best-and-final offer talks with Paramount Skydance, which signaled it would pay $31 per share in its competing proposal.
1. Netflix-WBD Deal Overview
In December, Netflix agreed to purchase Warner Bros. Discovery’s studio and streaming businesses for more than $80 billion in cash, planning a spin-off of TV networks into a separate company. The transaction carries an enterprise value of about $83 billion when including Warner’s net debt.
2. Seven-Day Waiver Terms
Netflix granted Warner Bros. Discovery a seven-day waiver from its no-shop provisions, allowing the company to reopen takeover discussions with Paramount Skydance. Under this waiver, WBD has until February 23 to explore improved proposals without jeopardizing Netflix’s binding agreement.
3. Paramount Skydance Counteroffer
Paramount Skydance has revised non-price terms in its hostile bid but maintained a cash price of $31 per share, indicating stronger value for WBD shareholders. Despite signaling this pricing, Paramount has not yet submitted an updated written proposal reflecting the increase.
4. Strategic Implications for Netflix
Resumed talks inject uncertainty into Netflix’s planned acquisition timeline and may prompt higher counterbids, intensifying financing and regulatory challenges. Netflix could face pressure to enhance its offer or accelerate due diligence to safeguard shareholder support.