Warner Bros. Discovery introduced that Paramount’s new supply is “superior” to the studio’s unique cope with Netflix.
Though Paramount is at the moment within the lead, Warner Bros. is permitting Netflix to counter their supply inside 4 days. The streamer must revise its supply of $82.7 million that Warner Bros. initially agreed to in December 2025.
If Netflix’s counteroffer nonetheless is not as much as par with its rivals’ proposal, Warner Bros. does have the fitting to throw out its cope with Netflix, regardless of initially agreeing to it. This new growth raised the stakes even larger for the acquisition battle that has solely been escalating for the previous few months. Take a look at WBD’s official assertion under:
WBD has notified Netflix of its dedication that the PSKY proposal constitutes a ‘Firm Superior Proposal.’ Below the phrases of the Netflix merger settlement, this discover triggers a 4 enterprise day interval throughout which Netflix has the fitting to suggest revisions to the Netflix merger settlement in order that the PSKY proposal would stop to represent a ‘Firm Superior Proposal.’
“Following the conclusion of this era, if the Board determines in good religion, after session with its impartial monetary and authorized advisors, that, after contemplating any revisions to the phrases of the Netflix merger settlement proposed by Netflix, the PSKY proposal continues to represent a ‘Firm Superior Proposal,’ WBD could be entitled to terminate the Netflix merger settlement.
Paramount’s most up-to-date bid values the corporate at $31 per share and contains a number of further incentives aimed toward strengthening the supply. Amongst them is a ticking payment that would supply shareholders with $0.25 per share for every quarter beginning on September 30, 2026. The proposal additionally has a $7 billion reverse termination payment tied to potential points that would forestall the transaction from closing. Paramount would additionally cowl the $2.8 billion breakup payment that Warner Bros. would owe Netflix for retracting its settlement.
The up to date phrases adopted discussions between Paramount and Warner Bros. Netflix additionally agreed to reopen negotiations so the studio may evaluate the brand new supply. Regardless of the brand new bid being supposedly higher than what Netflix proposed, the shareholder vote continues to be scheduled for March 20, 2026. Nevertheless, that would all change if the corporate chooses to tug out of the bidding conflict.
Paramount CEO David Ellison additionally expressed his pleasure concerning the new growth in an announcement, saying that it was much better than something Netflix may supply. He added that he was assured that Warner Bros. Discovery would conform to his firm’s phrases and that the deal would shut quickly. Learn his feedback under:
We’re happy WBD’s Board has unanimously affirmed the superior worth of our supply, which delivers to WBD shareholders superior worth, certainty and pace to closing,