Warner Bros Discovery is considering reopening sale talks with Paramount after receiving a new offer from Netflix, as the media merger battle intensifies.
NEW YORK: WARNER Bros Discovery is weighing whether to reopen sale talks with rival Paramount Global. This follows the receipt of a new, amended offer from its current suitor, Netflix, according to a Bloomberg News report.
The report, citing people with knowledge of the matter, said Warner’s board is discussing if Paramount could offer a superior deal. The board has not yet decided on a response and may still proceed with the Netflix agreement.
Paramount enhanced its bid for Warner last week by offering shareholders extra cash. It proposed a 25-cent-per-share quarterly “ticking fee” in cash starting in 2027 until the deal closes, worth about USD 650 million.
The CBS owner also agreed to cover the US$2.8 billion breakup fee Warner would owe Netflix if it walked away. Paramount did not, however, raise its core USD 30-per-share offer, which values the deal at US$108.4 billion including debt.
Both Netflix and Paramount covet Warner for its leading film and TV studios and major franchises. These include “Game of Thrones,” “Harry Potter,” and DC Comics superheroes like Batman and Superman.
Activist investor Ancora Holdings, with a nearly US$200 million stake, last week said it plans to oppose the Netflix deal. It argues Warner’s board did not sufficiently engage with Paramount over its rival bid, which includes cable assets like CNN and TNT.
Reuters could not immediately verify the Bloomberg report. Paramount, Warner Bros Discovery, and Netflix did not respond to requests for comment.
