Paramount’s Pricey Push: New Bid Targets Warner Bros Discovery
Paramount Global has submitted a new and higher offer to acquire Warner Bros. Discovery, in a move aimed at derailing Warner’s deal with Netflix, Reuters reported.
Paramount’s initial proposal was valued at 108.4 billion US dollars, or 30 dollars per share in cash. According to sources cited by Reuters, the revised offer places emphasis on securing financing arrangements. However, detailed terms of the updated proposal have not yet been disclosed.
In January, Netflix made an offer to acquire Warner Bros. at 27.75 dollars per share in cash, amounting to a total of 82.7 billion US dollars. The proposal includes popular franchises such as Harry Potter and Game of Thrones.
Warner’s shareholders are scheduled to vote on March 20 regarding Netflix’s offer. However, Paramount’s new bid could potentially influence shareholders to reconsider their position.
If implemented, Paramount’s proposal would create a studio larger than The Walt Disney Company. Nevertheless, the deal would face strict approval processes from competition commissions in the United States and Europe. Activist investment firms such as Ancora Capital are already pressuring Warner Bros. to enter discussions with Paramount.
Warner Bros. stated that Paramount’s February 10 proposal was not sufficient for its board to consider it a “superior offer.” As a result, Paramount was asked to submit a revised proposal by February 23. No immediate comments were available from either Warner or Paramount regarding the new bid.
DBTech/BMT/OR
