Warner Bros reject Paramount's takeover bid, grants a week for final offer, voting for Netflix deal set for 20 March

Core Viewpoint - Warner Bros Discovery has rejected Paramount Skydance's $30-per-share takeover offer but has allowed a seven-day period for a revised proposal, with Paramount suggesting a higher price of $31 per share [1][2]. Group 1: Takeover Offer Details - Paramount's current bid for Warner Bros is $108.4 billion, while Netflix has offered $82.7 billion specifically for its studio and streaming units [3]. - Paramount's financial advisor indicated that the offer could increase to $31 per share if negotiations are opened, with potential for further increases [3]. - Warner Bros has stated that any best-and-final proposal must exceed the current offers [3]. Group 2: Shareholder Vote and Merger Implications - Shareholders are scheduled to vote on the Netflix merger on March 20, 2026, after Warner Bros spins off its Discovery Global cable operations [4]. - Warner Bros has emphasized its commitment to the Netflix merger, stating that the proposal from Paramount is not likely to result in a superior transaction [2][5]. Group 3: Previous Engagements and Offers - Paramount has expressed frustration over the lack of meaningful engagement from Warner Bros regarding previous offers made over a 12-week period [6]. - The revised offer from Paramount included a personal guarantee of $40 billion in equity from Oracle founder Larry Ellison, which was also rejected [6]. - Paramount is considering adding directors to Warner Bros' board as part of its strategy to gain influence [7]. Group 4: Market Reactions and Statements - Netflix has claimed that its transaction provides superior value and certainty, while also acknowledging the distractions caused by Paramount's attempts [9]. - Paramount's latest strategy included offering additional cash to Warner Bros shareholders for each quarter the deal remains unclosed, along with agreeing to pay a $2.8 billion breakup fee to Netflix if the deal falls through [10].