Paramount Skydance Raises Bid to $31, Reopens WBD Talks and Shares Jump 5%
Warner Brothers Discovery reopened negotiations with Paramount Skydance after Paramount raised its acquisition offer to $31 per share and agreed to pay a $2.8 billion breakup fee if a Netflix deal falls through. Paramount shares jumped over 5% as odds of a Netflix-WBD merger dropped from 30% to 22%.
1. Reopened Negotiations
Warner Brothers Discovery has agreed to reopen discussions with Paramount Skydance after Paramount proposed raising its acquisition offer. This extension maintains a seven-day window for the board to consider a revised bid and keeps Paramount competitive with Netflix.
2. Revised Offer and Breakup Fee
Paramount raised its offer to $31 per share from its initial $30 cash proposal and committed to a $2.8 billion termination fee should Warner Brothers Discovery revert to a Netflix agreement. This fee secures Paramount’s position in the bidding process.
3. Market Reaction and Merger Odds
Paramount shares surged over 5% on the reopening of talks, while market-implied odds of a Netflix-WBD merger by year-end declined from 30% to 22%. The shift reflects investors’ reassessment of Netflix’s chance to secure the deal.