- Warner Bros. Discovery’s seven-day discussion window with Paramount ends at 11:59 p.m. ET on Monday.
- Once Paramount submits a higher bid, Netflix has four days to match it or walk away.
- On Friday, Paramount said it had cleared a significant U.S. antitrust checkpoint in its planned all-cash acquisition of WBD.
Paramount Skydance Corp. (PSKY) is reportedly expected to sweeten its prior $30-per-share proposal to acquire Warner Bros. Discovery Inc. (WBD), escalating a high-stakes contest with Netflix Inc. (NFLX).
Warner Bros. Discovery’s board, with Netflix’s consent, granted Paramount a seven-day window to refine its proposal, a period that ends at 11:59 p.m. ET today.
Clock Ticking On Revised Bid
According to Variety’s report, people familiar with the talks indicate Paramount’s updated offer could reach about $32 per share.
Paramount stock traded over 1% higher in Monday’s premarket. On Stocktwits, retail sentiment around the stock remained in ‘bullish’ territory amid ‘high’ message volume levels.
Once Paramount submits a higher bid, Netflix has four days to match it or walk away. The streaming giant’s Co-CEO Ted Sarandos signaled caution in an interview with Variey, saying the company has a “rich history” of being “willing to walk away and let someone else overpay for things.” Netflix currently has an agreement to acquire Warner Bros.’ studios and streaming assets for $27.75 per share.
Concerns Over Financing And Terms
In a letter addressed to Paramount’s board, WBD Chairman Samuel A. Di Piazza, Jr. and CEO David Zaslav outlined outstanding concerns, including financing risk and equity funding certainty. They asked Paramount to clarify whether it would exceed $31 per share and confirm its “best and final” position. A shareholder vote on the Netflix transaction is set for March 20, and the board continues to recommend that deal.
The company said Netflix’s agreement offers stronger closing certainty and minimal financing exposure compared with Paramount. If WBD pivots to Paramount, it would owe Netflix a $2.8 billion termination fee. Paramount has indicated it would cover that cost.
On Friday, Paramount said it had cleared a significant U.S. antitrust checkpoint in its planned all-cash acquisition of WBD, as the mandatory 10-day waiting period under the Hart-Scott-Rodino Act ended on February 19 after it fulfilled a Justice Department request for additional information related to the deal.
With that review period now expired, no U.S. antitrust law obstacle remains to block the merger.
PSKY stock has declined by over 9% in the last 12 months.
Also See: DJT Stock Draws Bearish Retail Buzz On Tariff Turmoil And Supreme Court Ruling
For updates and corrections, email newsroom[at]stocktwits[dot]com.