WBD Considering Paramount Engagement After Ellisons’ Latest Offer Amidst Changing Landscape

Warner Bros. Discovery (WBD) may soon engage with Paramount after recent developments surrounding the Ellison family’s latest offer. This comes amid a series of unsolicited takeover attempts by Paramount, which WBD has thus far rejected. The evolving landscape has drawn attention, particularly from shareholders advocating for a reconsideration of options.

Paramount’s Revised Offer

Paramount’s latest bid has introduced significant changes intended to appeal to WBD. The offer now includes:

• Cash payment of $30 per share.
• A $0.25-per-share ticking fee payable quarterly if the transaction remains unresolved past December 31, 2026, totaling approximately $650 million per quarter.
• Commitment to cover a $2.8 billion termination fee to Netflix.
• Various concessions regarding WBD’s debt financing costs and obligations.

Despite these revisions, Paramount has not confirmed whether this is its final offer. The company has made a public tender proposal to WBD shareholders, with a deadline that has already been extended twice, now set for February 20.

WBD’s Current Standing

WBD remains under a signed agreement with Netflix. This deal involves the acquisition of Warner Bros. Studios and its streaming assets for $27.75 per share, all in cash. Netflix had revised its initial offer, which included both cash and stock, in response to market pressures.

In light of these developments, some WBD shareholders, including activist investor Ancora Capital, are pushing for the board to explore all available options. Last week, WBD acknowledged receiving Paramount’s amended proposal and stated it was under review while continuing to honor its agreement with Netflix.

Future Outlook

A special shareholders meeting has been tentatively planned for April to vote on the Netflix merger. However, the recent changes in negotiations with Paramount have created uncertainty regarding this timeline. Reports suggest that WBD’s attitude toward the proposed engagement with Paramount may be shifting.

Representatives from both WBD and Paramount declined to provide further comment on the situation, leaving stakeholders eagerly anticipating the next steps in this evolving corporate landscape.