Hollywood
Warner Bros rejects Paramount’s latest bid, gives seven-day deadline for revised offer
Studio seeks bid above $31 a share while backing Netflix merger
NEW YORK: Warner Bros Discovery has rejected Paramount Skydance’s latest hostile bid of $30 a share but granted the suitor seven days to submit a “best and final” offer, even as it reiterated its support for a merger with Netflix.
In a letter sent on Tuesday, Warner Bros said Paramount had informally floated a higher price of $31 a share, but the board did not consider the proposal reasonably likely to result in a superior transaction to its existing Netflix deal.
Paramount has until February 23 to improve its offer. Under the merger agreement, Netflix is entitled to match any competing bid, Warner Bros said.
“Our board has not determined that your proposal is reasonably likely to be superior to the Netflix merger,” chairman Samuel DiPiazza Jr and chief executive David Zaslav wrote to the Paramount board. “We remain fully committed to our transaction with Netflix.”
Paramount’s offer values Warner Bros at $108.4 billion, while Netflix has agreed to pay $27.75 a share, valuing Warner Bros’ studio and streaming assets at $82.7 billion. Warner Bros plans to spin off its Discovery Global cable networks: including CNN, TLC, Food Network and HGTV, into a separate listed company ahead of the merger vote scheduled for 20 March.
Warner Bros said it expects any acceptable Paramount bid to exceed $31 a share, noting that a Paramount adviser had suggested higher pricing was possible if talks reopened.
Shares of Paramount rose 6 per cent, while Warner Bros Discovery gained 2.3 per cent. Netflix shares fell 1.4 per cent.
The move marks a shift after months of resistance. Paramount has said Warner Bros previously failed to engage meaningfully on six approaches before announcing its Netflix deal in December. A revised Paramount proposal in January, backed by a $40 billion personal equity guarantee from Larry Ellison, father of Paramount chief executive David Ellison, was also rejected.
Warner Bros now faces growing pressure from activist investor Ancora Holdings, who opposes the Netflix transaction. Paramount has separately sought board representation, with Pentwater Capital backing its bid.
The deal is expected to face regulatory scrutiny over competition concerns, with Paramount and Netflix engaging with authorities including the US Department of Justice.
Hollywood
Paramount seeks FCC nod for foreign-backed $110 billion WBD deal
Gulf funds back merger as foreign stake nears 50 per cent, control stays with Ellison
NEW YORK: Paramount Global has approached the Federal Communications Commission seeking approval for foreign investments tied to its proposed $110 billion acquisition of Warner Bros. Discovery, marking another key step in one of the biggest media deals in recent years.
According to regulatory filings made public this week, the investment backing the deal includes major Gulf sovereign funds such as the Public Investment Fund, the Qatar Investment Authority and L’imad Holding Company. Together, foreign investors are expected to hold just under 50 per cent of Paramount’s equity once the transaction is complete.
Despite the sizeable international backing, Paramount has made it clear that voting control will remain with the family of chief executive David Ellison, ensuring the company stays firmly under US control as required by broadcasting rules.
A company spokesperson described the FCC filing as routine for transactions involving foreign capital and stressed that it does not impact the closing of the deal. Under US law, any significant foreign ownership in broadcast licence holders must undergo regulatory review.
The merger itself has already cleared a major hurdle, with Warner Bros. Discovery shareholders approving the deal on 23 April. The transaction values the company at $31 per share, a 147 per cent premium to its earlier trading price, reflecting strong strategic intent behind the tie-up.
If completed, the combined entity will bring together a vast portfolio including Warner Bros. film studios, HBO Max, and networks such as CNN, TNT and Discovery Channel. The deal is currently expected to close in the third quarter of 2026.
However, scrutiny is intensifying. The US Department of Justice has issued subpoenas seeking details on the merger’s potential impact on cinema competition, streaming services and content licensing. Reviews are also anticipated in international markets, including the United Kingdom.
There is also a financial safety net built into the agreement. If regulators ultimately block the deal, Paramount would face a $7 billion break-up fee. Additionally, the company has taken on $2.8 billion in obligations previously owed by Warner Bros. Discovery to Netflix following an earlier terminated arrangement.
Paramount maintains that easing foreign ownership barriers will unlock fresh capital and strengthen its ability to compete in a rapidly evolving media landscape. For now, the spotlight remains on regulators, whose decision will determine whether this global media consolidation moves from script to screen.
