Warner Bros rejects revised Paramount bid, but remains open to a final offer

Core Viewpoint - Warner Bros Discovery has rejected Paramount Skydance's $30-a-share hostile bid, favoring its existing agreement with Netflix for the sale of its businesses, including HBO Max and the "Harry Potter" franchise [1][3]. Group 1: Bid Details - Paramount has informally proposed a higher bid of $31 per share, which has prompted Warner Bros to consider the offer, although it still prefers the Netflix deal [2][3]. - Paramount has until February 23 to submit a new offer, which Netflix can match under the merger agreement terms [3]. Group 2: Company Responses - Warner Bros' board has expressed that Paramount's proposal is unlikely to result in a superior transaction compared to the Netflix merger, reaffirming their commitment to the Netflix deal [3][4]. - Paramount has acknowledged the seven-day offer period and plans to continue its tender offer while opposing the Netflix merger [4]. Group 3: Financial Implications - A successful acquisition would grant the buyer ownership of Warner Bros' extensive film and television library, which includes iconic titles like "Casablanca" and "Friends" [5]. - Paramount's current offer values the entire company at $108.4 billion, while Netflix's offer for its studio and streaming businesses is $27.75 per share, totaling $82.7 billion [6].