Warner Bros Discovery Rejects Paramount's $30 Bid, Seeks Higher Offer by February 23
Warner Bros Discovery has rejected Paramount Skydance's $30-per-share hostile takeover bid but granted a one-week window, until February 23, to submit an improved proposal exceeding $31. The board reaffirmed commitment to Netflix's $27.75-per-share offer for its studio and streaming assets while scheduling a March 20 shareholder vote post-spinoff of Discovery Global operations, valued at $1.33–$6.86 per share.
1. Paramount Bid Rejected and Negotiation Window
Warner Bros Discovery’s board has formally rejected Paramount Skydance’s $30-per-share hostile takeover proposal but granted the rival seven days, until February 23, to deliver a superior offer. Paramount signaled willingness to raise its bid to $31 per share and potentially higher if negotiations proceed.
2. Netflix Merger Terms Firmly Endorsed
Despite engaging with Paramount, the board reiterated full commitment to the existing Netflix merger agreement, set at $27.75 per share for the studio and streaming units. A shareholder vote on the Netflix transaction is scheduled for March 20 following the planned spinoff of Discovery Global assets.
3. Discovery Global Spinoff Valuation
The spinoff will separate Discovery Global from Warner Bros Discovery, creating a standalone public company encompassing cable networks such as CNN, TLC, Food Network and HGTV. Warner Bros Discovery estimates Discovery Global could be valued between $1.33 and $6.86 per share once independent.
4. Timeline for Best and Final Offer
Paramount now has one week to submit its best and final proposal under the existing merger agreement, after which Netflix holds matching rights. The outcome will determine whether shareholders proceed with the Netflix deal or consider a higher Paramount bid.