Warner Bros. reopens talks after Paramount signals higher offer

Core Viewpoint - Paramount Skydance Corp.'s CEO David Ellison is attempting to disrupt Warner Bros.' agreement with Netflix by making a revised offer for Warner Bros. [1][2] Group 1: Paramount's Offer - Warner Bros. has agreed to reopen negotiations with Paramount after receiving a revised proposal that includes an increase in the bid to at least $31 per share [2] - Paramount's latest proposal includes covering a $2.8 billion fee owed to Netflix if Warner Bros. terminates its agreement and backing a Warner Bros. debt refinancing [13] - Paramount's bid of $77.9 billion aims to acquire the entirety of Warner Bros., including its cable-TV channels, which are planned to be spun off under the Netflix deal [5] Group 2: Warner Bros. and Netflix's Position - Warner Bros. CEO David Zaslav emphasized the focus on maximizing value for shareholders, recommending a vote in favor of the binding agreement with Netflix for $72 billion [4][5] - Netflix's co-CEO Ted Sarandos stated that the company allowed Warner Bros. to reopen talks due to confusion created by Paramount's actions [6][7] - Netflix maintains that it has the only signed agreement with Warner Bros. and views its deal as the most certain path to delivering value to shareholders [12] Group 3: Market Reactions and Shareholder Support - Warner Bros. shares rose by 2.7% to close at $28.75, while Paramount's shares increased by 4.9% to $10.83 [4] - Some investors, including Ancora Holdings Group and Pentwater Capital Management, have urged Warner Bros. to reconsider Paramount's offer, although only 42.3 million shares were tendered to Paramount, representing less than 2% of outstanding shares [15]