Paramount Extends Deadline on Hostile Bid for Warner Bros

Paramount Skydance has announced a new deadline for its hostile tender offer for Warner Bros Discovery. This move continues its campaign against the proposed sale of Warner Bros to Netflix, a deal that has already garnered considerable attention in the media. The deadline for Paramount’s offer now expires on February 20.

The entertainment behemoth has been pursuing the acquisition of Warner Bros since September, but the situation became more complex when Warner Bros initiated plans to sell its studio and HBO Max streaming business to Netflix on December 5. Paramount retaliated with its hostile bid on December 8, seeking to bring Warner Bros to the negotiating table.

Warner Bros has indicated that its board unanimously rejected Paramount’s revised bid, which included USD 40 billion in equity guaranteed by Larry Ellison, Oracle’s co-founder. The board cited a superior merger agreement with Netflix as the reason for their refusal. The Netflix deal would allow the streaming giant to maintain ownership of significant properties, including the Harry Potter franchise and other notable projects.

The ongoing conflict underscores the competitive nature of the entertainment industry, as Paramount has attempted to rally investor support against the Netflix acquisition. As shareholders have largely sided with Warner Bros, with more than 93 percent rejecting Paramount’s previous offer, the stakes remain high.

Market reactions have revealed fluctuations in share prices for all companies involved. Paramount shares saw a slight increase, while shares of Netflix and Warner Bros experienced minor declines. The future of Warner Bros is now anticipated to come to a head in an upcoming shareholder vote, likely scheduled for April. This vote will determine whether investors will endorse Netflix’s acquisition or consider Paramount’s ongoing bid.