Warner Bros. Discovery, Inc.’s (NASDAQ:WBD) board is reportedly weighing a revised $30-a-share proposal from Paramount Skydance (NASDAQ:PSKY) to see if it could top its existing agreement with Netflix Inc. (NASDAQ:NFLX).
Paramount Revises Offer To Address Netflix Break Fee
Warner Bros is planning to re-open its sales talks with Paramount after the David Ellison-led company made its latest amended offer last week, Bloomberg reported, citing people with knowledge of the matter.
Warner Bros. had agreed to sell its namesake studio and HBO Max to Netflix for $27.75 per share. Last month, Netflix decided to switch to an all-cash offer without increasing its $82.7 billion price.
As per the amended offer, Paramount will cover the roughly $2.8 billion termination fee Warner Bros would owe Netflix if it terminates the existing agreement.
The proposal also includes a promise to compensate shareholders if the deal fails to close by Dec. 31.
Netflix, Paramount and Warner Bros. did not immediately respond to Benzinga’s request for comments.
Board Weighs Potential Bidding War
The latest developments mark the first time Warner Bros.’s board has seriously considered Paramount’s offer.
Earlier this week, it was reported that Ancora Holdings took a $200 million stake in Warner Bros with the intention of opposing its deal with Netflix. The company is arguing that Warner Bros.’s board did not give adequate consideration to Paramount’s rival bid.
Meanwhile, earlier this month, President Donald Trump decided not to personally intervene in the deal.
Price Action: Warner Bros. shares are down 1.76% in the past month. During the same time, Netflix and Paramount’s shares slipped over 12%, according to Benzinga Pro.
NFLX is showing a weak price trend across the short, medium and long term, along with low value and momentum scores, according to data from Benzinga’s Edge Stock Rankings.
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