Paramount Raises Bid to $31 per Share, Challenging Netflix’s $82.7B Offer
Paramount raised its hostile bid for Warner Bros. Discovery to $31 per share in cash with a $7 billion regulatory fee and a $2.8 billion breakup payment to Netflix. Warner Bros. board said the revised bid could be superior to Netflix’s $82.7 billion all-cash offer.
1. Paramount’s Revised Offer
On February 24 Paramount Skydance submitted an improved hostile proposal to acquire Warner Bros. Discovery at $31 per share in cash, sweetened by a $7 billion regulatory termination fee and a $2.8 billion breakup payment to Netflix.
2. Netflix’s All-Cash Bid
Netflix switched its original offer to an all-cash structure valued at $82.7 billion on January 20 without increasing the bid price, aiming to reinforce its push for control of Warner Bros. Discovery.
3. Warner Bros. Board Considerations
The Warner Bros. Discovery board stated that Paramount’s revised proposal could reasonably constitute a superior offer to Netflix’s, indicating potential momentum toward the higher cash bid.
4. Implications for Netflix
A shift in board support could force Netflix to reassess its financing commitments, increase leverage on its balance sheet and pressure shareholders to justify the $82.7 billion valuation.