<\/p>\n
Warner Bros Discovery is considering a new takeover proposal from Paramount Skydance Corp, the latest salvo in a months-long battle for control of one of Hollywood\u2019s most famed studios.<\/p>\n
The parent of HBO and CNN said its board will review the proposal and respond, according to a statement on Tuesday. Warner Bros didn\u2019t specify the terms of the new offer, but Bloomberg News reported on Monday that it was higher than the $30 a share Paramount was offering previously.<\/p>\n
If the Warner Bros board deems the new Paramount offer superior to the one it has already accepted from Netflix, then Netflix will have four days to make a counteroffer, according to the terms of their merger agreement.<\/p>\n
ADVERTISEMENT<\/p>\n
CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n
In the meantime, Warner Bros told investors Tuesday that it still has a deal with Netflix and stockholders shouldn\u2019t tender their shares to Paramount.<\/p>\n
\u201cThe Netflix merger agreement remains in effect, and the board continues to recommend in favor of the Netflix transaction,\u201d Warner Bros. said.<\/p>\n
Shares of Paramount and Netflix rose less than 1% in premarket trading in New York.<\/p>\n
Paramount has submitted multiple bids for Warner Bros. since last year and has been repeatedly rebuffed. Instead, Warner Bros. reached an agreement in early December to sell its studios and streaming business to Netflix for $27.75 a share, a transaction worth $82.7 billion, including debt. Their plans involve an eventual spin-off of Warner Bros cable-TV channels like CNN and TNT to investors.<\/p>\n
Paramount, which is led by technology heir David Ellison, has repeatedly tweaked the terms of its offer, which valued Warner Bros as a whole at $108 billion, including debt. Ellison has taken his proposal directly to shareholders and threatened a proxy battle.<\/p>\n
In a revised offer earlier this month, Paramount addressed some of Warner Bros.\u2019 concerns by agreeing to pay the $2.8 billion fee that would be owed to Netflix if its deal fell through, as well as agreeing to back some of Warner Bros debt costs.<\/p>\n
Last week Warner Bros reopened talks with Paramount for a seven-day period in order to give Paramount an opportunity to submit its \u201cbest and final\u201d offer.\u201d At the time, Warner Bros said Paramount indicated that if discussions resumed, the company would agree to pay at least $31 a share.<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n
Follow Moneyweb\u2019s in-depth finance and business news on WhatsApp here.<\/em><\/p>\n<\/p><\/div>\n