The conversations we were talking about yesterday have taken place. Warner Bros Discovery has rejected the latest hostile takeover bid presented by Paramount Skydance, but has given the studio one week — until February 23 — to present an improved proposal that can compete with the deal it already has with Netflix.
The board of directors of Warner Bros has communicated to Paramount that its current offer continues to be surpassed in neither value nor certainty by that of Netflix, which proposes approximately $82.7 billion for the studios and streaming division. However, after months of negotiations and rival offers from Paramount —which is around $108 billion for the entire company— Warner has agreed to reopen discussions and explore if the offer can be improved.
Netflix, for its part, has granted a temporary exemption that allows Warner Bros to maintain conversations with Paramount during these seven days without invalidating the existing agreement with the platform. The company has also scheduled a shareholders' meeting for March 20 in which the agreement with Netflix, which remains the board's preferred option, will be voted on.
Warner Bros' decision to give this opportunity to Paramount comes amid pressure from some activist investors, who consider that the rival offer could represent a "superior deal", although doubts persist about the financing and certainty of closing.
The battle for control of Warner Bros continues, with Paramount pressured to improve its proposal before the deadline expires, and with Netflix awaiting shareholder approval to consolidate its acquisition.