Warner Bros rejects Paramount's revised offer, but gives studio a week to negotiate better deal

Core Viewpoint - Warner Bros has rejected Paramount's latest $30-a-share hostile takeover bid but has given Paramount a week to negotiate a better deal, indicating a potential shift in negotiations [1] Group 1: Warner Bros and Paramount Negotiations - Warner Bros Discovery has rejected Paramount Skydance's latest offer but is allowing a week for Paramount to submit a better proposal [1] - Paramount has informally proposed raising its offer to $31 a share, which could entice Warner Bros to negotiate [1] - Warner Bros remains committed to its merger agreement with Netflix, with a shareholder vote scheduled for March 20 [1] Group 2: Financial Implications - Paramount's current offer values the company at $108.4 billion, while Netflix's offer for Warner Bros' studio and streaming businesses is $82.7 billion [1] - Warner Bros expects a final proposal from Paramount to exceed the $31 per share offer [1] - Warner Bros estimates that its Discovery Global cable operations could fetch between $1.33 and $6.86 per share in a spin-off [1] Group 3: Market Reactions - Following the news, Paramount shares rose by 4.2% in premarket trading, while Warner Bros shares increased nearly 2% [1] - Ancora Holdings, an activist investor, has pressured Warner Bros to engage more meaningfully with Paramount regarding its offers [1] Group 4: Legal and Strategic Considerations - Warner Bros secured a special waiver from Netflix to engage in negotiations with Paramount, indicating a legal loophole allowing limited discussions [1] - Paramount's revised offer includes a personal guarantee on $40 billion in equity from Oracle founder Larry Ellison, which was previously rejected [1] - Paramount's offer still leaves unresolved issues regarding financing and potential fees, which Warner Bros has highlighted as concerns [1]