Warner Bros. Discovery Netflix deal takes center stage as the media giant reaffirms its commitment to its streaming agreement with Netflix while briefly reopening negotiations with Paramount Global over a potential competing bid. Shareholders and industry watchers are closely following these developments, which could reshape the entertainment landscape.
Warner Bros. Discovery (WBD) has opened a limited window to consider Paramount’s “best and final proposal.” The company emphasized that shareholders should reject Paramount’s current hostile offer and approve the Netflix deal. WBD’s approach aims to balance shareholder value with flexibility to explore potentially higher offers.
The original Netflix transaction includes the sale of Warner Bros. film studio and HBO, while cable networks like CNN are set to spin off into a separate entity. The deal values the studio and streaming assets at $27.75 per share.
Paramount, led by CEO David Ellison, bypassed WBD’s board with an unsolicited offer of $30 per share for the entire company, including CNN. WBD disclosed that Paramount signaled it might raise the bid to $31 per share if talks resumed but did not rule out further increases.
Despite the signed merger agreement with Netflix, WBD secured a seven-day waiver from the streaming company to engage with Paramount. CEO David Zaslav highlighted that the company’s main priority is maximizing value and certainty for shareholders. He noted that Paramount has been repeatedly warned about weaknesses in its proposals and now must demonstrate whether it can make a superior and actionable offer.
Netflix criticized Paramount’s bid, calling it financially risky and expressing concerns about funding sources. The streaming giant cited regulatory scrutiny risks, particularly due to foreign investment backing the Paramount proposal, which includes capital linked to Middle Eastern royal families.
WBD maintains that its board has not concluded that Paramount’s offer surpasses the Netflix merger. Reopening talks signals that WBD remains open to evaluating higher bids, while shareholders await clarity.
The outcome of this high-stakes negotiation will hinge on the special shareholder meeting scheduled for March 20. The vote will decide whether the Netflix deal moves forward or if a revised Paramount bid could gain traction. Industry observers note that these events may redefine streaming and media ownership dynamics in the coming years.
