Warner Bros. Discovery has rejected Paramount Skydance’s latest $30-a-share hostile takeover bid, but is giving it seven days to come up with a better deal, Warner said on February 17. Paramount informally broached a share price of $31, Warner revealed.
The rival bidder has until February 23 to submit its “best and final offer”, which Netflix will then be allowed to match under the terms of the merger agreement. “Our board has not determined that your proposal is reasonably likely to result in a transaction that is superior to the Netflix merger,” Warner Bros. chairman Samuel DiPiazza Jr. and CEO David Zaslav said in a letter sent on Febuary 17 to the Paramount board. “We continue to recommend and remain fully committed to our transaction with Netflix.”
Netflix and Paramount have been vying for control of Warner Bros., its flagship film and TV studios and huge content library. Reportedly, Paramount’s offer would be officially raised to $31 per share if Warner Bros. agreed to open negotiations, and it could go even higher.