Netflix Offers Waiver Through Feb 23, Paramount Must Top $31 Share Bid
Warner Bros. Discovery granted Paramount Skydance a seven-day window through February 23 to submit a best-and-final offer topping $31 per share after Netflix secured a $72 billion cash merger agreement. Paramount’s revived proposal includes $30 per share plus a $2.8 billion breakup fee, compared with Netflix’s prior $27.75 offer.
1. Bidding Timeline and Terms
Warner Bros. Discovery invoked a provision in its merger agreement to grant Paramount Skydance until February 23 to submit a best-and-final proposal. This seven-day waiver allows Paramount to negotiate without triggering termination fees owed to Netflix, while preserving Netflix’s original merger terms.
2. Netflix’s Initial Merger Offer
In December, Netflix agreed to acquire Warner’s TV and film assets for $72 billion in cash, valuing shares at $27.75 each and excluding its traditional media TV networks slated for spin-off. The agreement included a $2.8 billion breakup fee payable to Netflix if Warner opted to terminate the deal.
3. Paramount’s Revived Proposal
Paramount’s revamped bid offers $30 per share for Warner Bros. Discovery’s full asset portfolio and covers the entire $2.8 billion breakup fee originally owed to Netflix. This strategy indicates Paramount’s intent to exceed $31 per share to secure control of Warner’s premium media brands.