Hollywood Showdown: Paramount vs. Netflix for Warner Bros Takeover

Paramount Skydance has extended its deadline for a hostile tender offer on Warner Bros Discovery to outbid Netflix for ownership of iconic Hollywood franchises. Despite the extension, Paramount hasn't raised its bid, while Netflix has revised its offer to an all-cash deal, raising the stakes.

Paramount Skydance extended its hostile tender offer for Warner Bros Discovery until February 20, seeking to outmaneuver Netflix's competing bid. Only 6.8% of Warner Bros shares had been tendered by the initial deadline. The proposed acquisition could reshape Hollywood, granting access to franchises like "Friends" and "Batman".

Netflix aims to expedite the deal with an all-cash offer of $27.75 per share for Warner Bros' streaming and studio assets, moving away from its previous stock-and-cash proposal. However, Paramount remains aggressive, urging a shareholder vote and challenging Warner Bros to elevate Paramount's offer of $108.4 billion, or $30 per share.

The intense bidding war may culminate in a shareholder vote expected by April. Paramount highlighted issues with Netflix's financial strategy, involving debt unloading to a Discovery Global spinoff. Meanwhile, Netflix eyes the HBO Max acquisition to enhance its subscription model and enter the theatrical business.

(With inputs from agencies.)