Summary
Warner Bros. Discovery is talking to Paramount about a possible takeover after getting permission from Netflix to do so. While these talks happen, Warner Bros. still supports its earlier merger deal with Netflix. Paramount wants to buy Warner Bros. outright, offering more money per share than Netflix did, but Warner Bros. is considering both offers.
Key Facts
- Warner Bros. Discovery is in takeover talks with Paramount, which is owned by Skydance.
- Netflix has allowed Warner Bros. one week to negotiate with Paramount.
- Warner Bros. supports its existing merger deal with Netflix, which is worth $72 billion.
- Paramount's offer includes Warner Bros.' entire company for $77.9 billion, or $108 billion including debt.
- Paramount's bid is $30 per share, higher than Netflix's $27.75 per share offer.
- Paramount is willing to increase its bid to $31 per share.
- Warner Bros. will hold a shareholder vote on the Netflix deal.
- Paramount is trying to gain more shareholder support with incentives, like a "ticking fee."
