WBD Reviewing Revised PSKY Offer Even As Board Reaffirms Support For Netflix Merger

• Following WBD’s announcement, Paramount also confirmed that it has sent a revised bid.
• The company said that the bid was sent after WBD received a seven-day waiver under its agreement with Netflix to engage with Paramount.
• Paramount added that entering into a transaction would require the WBD board to determine that PSKY’s offer is superior when compared to the Netflix merger agreement.

Warner Bros. Discovery Inc. (WBD) on Tuesday confirmed the receipt of Paramount Skydance Corp.’s (PSKY) revised bid for the company.

“Following engagement with PSKY during the seven-day limited waiver period, we received a revised PSKY proposal to acquire WBD, which we are reviewing in consultation with our financial and legal advisors. We will update our shareholders following the Board's review,” the company stated.

WBD also noted that the merger agreement with Netflix Inc. (NFLX) remains in effect, adding that Warner Bros. Discovery’s board continues to recommend it over the Paramount offer.

Warner Bros. Discovery shares were up 1% in Tuesday’s opening trade, while Paramount Skydance shares rose 0.7%. Retail sentiment on Stocktwits around WBD trended in the ‘extremely bullish’ territory, while users felt ‘bullish’ about PSKY.

Netflix shares were up 1% at the time of writing, with retail sentiment trending in the ‘bearish’ territory on Stocktwits.

Paramount Confirms Sending A Revised Bid

Paramount also confirmed that it has sent a revised bid and that the bid was sent after WBD received a seven-day waiver under its agreement with Netflix to engage with Paramount.

Paramount added that entering into a transaction would require the WBD board to determine that PSKY’s offer is superior when compared to the Netflix merger agreement.

It also requires the expiration of four business days to match Paramount’s offer, the termination of WBD’s merger agreement with Netflix, and then entering into a definitive merger agreement with Paramount.

Activist Investor Calls Out WBD For Choosing Netflix

Earlier this month, activist investor Ancora said the WBD board is calling on shareholders to vote for an “uncertain final cash consideration based on an unknown debt allocation and an unknown equity value of the Discovery Global spinoff.”

The firm also pointed to antitrust concerns over the Netflix deal, while the Paramount deal has a “viable path to regulatory approval.”

Ancora stated that WBD has a “clear path” to securing an even better offer from Paramount, stating that PSKY’s bid “includes certainty and can be increased.”

WBD stock is up 1% year-to-date, PSKY stock is down 21%, while NFLX stock has declined 18%.

Also See: AMD Stock Soars Pre-Market After Meta Expands Multi-Year AI Chip Partnership

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