- The report said that the new offer addresses some of the company’s concerns with previous Paramount bids which include greater certainty of Paramount financing.
- Last week, Paramount urged Warner Bros. Discovery’s shareholders to vote in favor of its offer by tendering their shares, after Netflix allowed WBD to reopen talks with Paramount.
- The last day of allowed engagement between Paramount and Warner Bros is Feb. 23.
Paramount Skydance (PSKY) has reportedly raised its offer to buy Warner Bros. Discovery Inc (WBD), the latest move in the battle with Netflix (NFLX) to acquire the firm.
The new bid improves on the $30-a-share, all-cash proposal that Paramount took directly to Warner Bros. shareholders on Dec. 8 and addresses some of the company’s concerns with previous Paramount bids, Bloomberg News reported, citing people familiar with the matter.
The concerns include greater certainty of Paramount financing, the report added.
Warner Bros in December agreed to sell its film, TV studios, and HBO Max business to Netflix for $27.50 a share.
Ongoing Battle
Last week, Paramount urged Warner Bros.’s shareholders to vote in favor of its offer by tendering their shares, after Netflix allowed WBD to reopen talks with Paramount.
While Warner Bros. set a March 20 shareholder vote for its planned merger with Netflix, it briefly allowed talks with Paramount Skydance. According to the agreement between Netflix and Warner Bros., any discussions between Warner Bros and Paramount are allowed till the end of Feb. 23.
Paramount’s Plans
Paramount said last week that it is prepared to engage in constructive discussions in good faith, and will continue to advance its tender offer, maintain its solicitation in opposition to the inferior Netflix merger, and proceed with the intention to nominate a slate of directors at the upcoming WBD annual meeting.
Paramount has also criticized Warner Bros by saying that the company has chosen to avoid making the customary determination under the Netflix merger agreement that Paramount's $30 per share all-cash offer "could reasonably be expected to result in" a superior proposal, which would have given Paramount an unfettered right to negotiate without a time constraint.
How Did Stocktwits Users React?
Retail sentiment around PSKY and WBD stock trended in ‘extremely bullish’ territory meanwhile in NFLX retail sentiment was trending in ‘neutral’ territory.
Shares in the PSKY and NFLX have fallen 8% and 24% over the past year. Whereas, in WBD shares have risen 164% over the same period.
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