Warner Bros Discovery Weighs Paramount Counteroffer Amid Netflix Deal

Warner Bros Discovery evaluates a new $31 per share bid from Paramount Skydance, led by David Ellison, against Netflix's existing $82.7 billion deal. Discussions with Paramount followed rejection of earlier bids. Warner's board is undecided on the superiority of the revised offer and awaits Netflix's response.

In a bold move, Warner Bros Discovery has opened negotiations with Paramount Skydance after the latter elevated its offer to $31 per share under the leadership of David Ellison. This development adds complexity to Warner's ongoing dealings with Netflix, which had previously agreed to acquire Warner's studio and HBO streaming service for a substantial $82.7 billion, or $27.75 per share.

The decision comes after a week of deliberations between Warner and Paramount, aimed at addressing concerns that led to the rejection of earlier bids. Paramount raised its offer intending to outbid the Netflix deal, yet Warner's board has yet to determine whether this revised proposal holds greater value.

As the industry waits intently, Netflix has a four-day window to counter the new terms set by Paramount. Warner Bros has expressed readiness to continue engaging with potential buyers, yet no definitive judgment has been reached regarding which offer stands as superior. Netflix has yet to comment on the latest developments.