Paramount raises its all-cash offer for Warner Bros Discovery to US$31 per share, challenging Netflix’s US$83 billion bid for select assets.
SAN JOSE: Hollywood giant Paramount has increased its takeover bid for Warner Bros Discovery, intensifying a battle with streaming rival Netflix.
Paramount raised its all-cash offer for the entire company to US$31 per share, up from US$30.
The Warner board said it would review the revised proposal to determine if it is superior to the existing agreement with Netflix.
Under that merger agreement, Netflix would have four days to submit a counterbid if Paramount’s offer is deemed better.
Netflix is seeking to acquire only Warner’s studio and streaming businesses for around US$83 billion.
Under that plan, Warner’s television networks, including broadcaster CNN, would be spun off into a separate company.
Paramount, which has offered US$108.4 billion for the full group, also pledged a US$7 billion reverse break-up fee should regulators block the transaction.
It previously committed to cover the US$2.8 billion termination fee Warner would owe Netflix if it walks away from the existing deal.
It remains unclear whether the revised bid will trigger a fresh round of price increases.
Netflix co-chief executive Ted Sarandos downplayed the prospect last week, telling Variety the streaming giant had previously preferred to step back rather than overpay.
Warner’s board continues to recommend that shareholders approve the Netflix deal, with a vote scheduled for March 20.
The companies signed a binding agreement in early December for the studio and streaming assets.
Paramount approached shareholders days later with its rival offer for the entire company.
The contest also affects CNN, which has frequently reported critically on United States President Donald Trump.
Trump said in December that the network should change owners in any deal.
Paramount was acquired by the family of Trump ally Larry Ellison last year, which has prompted concerns over CNN’s editorial independence.
(Bernama-dpa)
The Sun Malaysia
