WBD weighs fresh Paramount talks after sweetened bid

New Delhi: Warner Bros. Discovery is weighing whether to reopen talks with Paramount Skydance after the rival studio group sweetened its takeover proposal, according to a Bloomberg news report. 

This move could complicate WBD’s existing agreement with Netflix.

WBD is currently bound by a deal signed with Netflix, which values the transaction at $27.75 per WBD share under an all-cash structure, the company has said.

Paramount Skydance last week reiterated its $30-per-share all-cash offer and added financial sweeteners aimed at addressing WBD’s earlier objections. 

These include an offer to cover the $2.8 billion termination fee WBD would owe Netflix if it exits the Netflix agreement, and a “ticking fee” of $0.25 per share per quarter if the transaction does not close by December 31, 2026.

Reports said WBD’s board is deliberating whether Paramount’s revised terms amount to a superior proposal or could be used to push for improved economics from Netflix, though no final decision has been taken. 

WBD has a February 25 deadline to formally respond to Paramount’s latest proposal, as per reports.

Paramount has pitched a combined studio-and-streaming scale play, while analysts have flagged that any change in track would invite heightened regulatory and antitrust scrutiny, given the size of the assets involved and the broader consolidation wave in global media.