Warner Bros. Discovery Receives New Acquisition Offer from Paramount

　　Warner did not disclose the details of the offer, but last week gave the hostile acquirer 7 days to submit the "best and final" acquisition proposal.

　　Author: Joe Flint

　　Warner Bros. Discovery said on Tuesday that it had received a new all-cash acquisition offer from Paramount, but did not disclose specific details.

　　Warner stated that it is evaluating the offer. The board will determine whether it is superior to the acquisition agreement already signed with Netflix, which plans to acquire Warner's core film production company and HBO Max streaming service.

　　According to the terms of the Netflix acquisition agreement, if Warner accepts Paramount's offer, Netflix has the right to match the offer and has four days to submit a new bid.

　　Warner stated: "The merger agreement with Netflix remains in effect, and the board continues to recommend that shareholders support the transaction with Netflix." At the same time, shareholders are reminded that "no action is required at this stage regarding the revised Paramount offer."

　　Last week, Warner resumed negotiations with Paramount, giving the hostile acquirer a 7-day window to submit the "best and final" bid.

　　A Paramount spokesperson confirmed that a new offer had been submitted but refused to provide further details.

　　It is expected that Warner will provide shareholders with details of Paramount's new offer in the coming days. Paramount is scheduled to release its latest financial report on Wednesday, and Warner on Thursday.

　　Paramount, led by David Ellison, previously offered $30 per share, with an overall valuation of $77.9 billion, including cable networks such as CNN and TNT.

　　Netflix's offer for the film division and HBO Max is $27.75 per share, totaling $72 billion.

　　Netflix is not interested in the cable network assets; Warner is spinning off this part of the business into an independent company called "Discovery Global." Under the deal, Netflix will acquire Warner's Turner Classic Movies channel.

　　After Paramount revised its acquisition proposal, Warner resumed negotiations: Paramount pledged to assume the $2.8 billion breakup fee Warner would owe Netflix if the deal falls through, and added a new $0.25 per share quarterly "installment penalty" starting January 2027, payable to Warner shareholders if the transaction is not completed on time.

　　Netflix has agreed to Warner's decision to grant Paramount a new negotiation window, stating that its own offer remains the best and hoping to quell the "ongoing disruption" caused by Paramount's repeated interference with the deal.

　　Last week, Netflix also launched a public relations offensive against Paramount. Co-CEO Ted Sarandos gave multiple media interviews explaining why its offer is more favorable to Warner shareholders and the entertainment industry as a whole.

Editor: Guo Mingyu