Hollywood Showdown: Paramount vs. Netflix in the Battle for Warner Bros Discovery

Paramount extended its tender offer for Warner Bros Discovery to February 20, seeking to outbid Netflix. While Netflix revised its offer to an all-cash deal, Paramount is urging Warner investors to reject it, arguing it undervalues the company and complicates debt management. The decision will likely hinge on a shareholder vote.

Paramount Skydance has extended its hostile tender offer deadline to February 20 as it appears determined to secure a deal with Warner Bros Discovery, outbidding Netflix. By this extension, Paramount aims to sway investor opinion, despite not raising its bid from $108.4 billion.

Netflix's revision to an $82.7 billion all-cash offer seeks to expedite its acquisition plans, trumping their earlier stock-and-cash proposal. With Warner Bros board backing Netflix's offer, Paramount has responded with legal challenges and efforts to influence the outcome through a shareholder vote.

The ongoing bidding war among Hollywood giants is set against the backdrop of regulatory approvals, debt complexities, and strategic value assessments. Both Netflix and Paramount envision transformative scenarios for Warner Bros, with shareholders poised to make a significant decision by April.

(With inputs from agencies.)