Warner Bros Rejects Latest Paramount Bid, Open to Final Offer

Warner Bros Discovery Rejects Paramount’s Offer Amid Netflix Deal

Warner Bros Discovery has rejected Paramount Skydance’s latest bid to acquire the company, with the parent company of CBS News set to receive seven days to submit its “best and final offer.” The rejection comes amid a looming deal with streaming giant Netflix.

In a letter sent to the Paramount board on Tuesday, Warner Bros chairman Samuel DiPiazza Jr. and CEO David Zaslav stated that the proposed bid was not deemed likely to result in a superior transaction compared to the Netflix merger. Paramount is expected to offer a revised price of $31 per share, which would allow Netflix to match the terms.

Warner Bros shareholders are scheduled to vote on the Netflix bid on March 20. The company remains committed to its deal with Netflix, despite considering alternative offers from Paramount.

Netflix has issued a statement regarding the development, acknowledging that the deal has reached a milestone and noting the ongoing distraction caused by Paramount’s actions. The company expressed confidence in its transaction providing superior value and certainty.

Paramount has previously stated that it did not engage meaningfully with Warner Bros on six different offers made over 12 weeks prior to the announcement of the Netflix merger agreement on December 5.

Both deals have faced scrutiny in Washington, DC, amid concerns about industry consolidation and its impact on consumers. The potential shift in content is also a factor, particularly regarding possible changes to CNN under Paramount’s ownership.

CBS News, owned by Paramount, has made several moves aimed at appeasing the Trump administration, including appointing Bari Weiss as lead of the broadcast network and settling a lawsuit with Trump.

Source: Al Jazeera