Netflix risks losing the battle for Warner Bros. Discovery: WBD’s board of directors said that Paramount Skydance’s updated offer is more favorable in terms than the current agreement with the streaming company.
Netflix risks losing the battle for Warner Bros. Discovery: WBD’s board of directors said that Paramount Skydance’s updated offer is more favorable in terms than the current agreement with the streaming company.
According to Warner Bros. Discovery, Paramount Skydance offered $31 in cash per share for WBD. In addition to the price, the offer includes a cash-on-delivery mechanism that will begin accruing after September 30, 2026, as well as a large «safety net» in case of regulatory rejection: the buyer is ready to pay $7 billion in compensation if the deal does not close due to a decision by regulators.
Another important point concerns the termination of the current agreement with Netflix. WBD indicates that Paramount Skydance will assume the payment of $2.8 billion that WBD would have had to pay Netflix as compensation for the termination of the agreement. The statement also mentions the commitment of Larry Ellison and the associated trust to add their own funds, if required by banks, to confirm the solvency of the deal.
After WBD officially notified Netflix of the board’s decision, a four-day period began during which Netflix could submit an updated proposal or propose changes to the terms to make its deal more favorable to WBD again. If, after that, the board decides that Paramount Skydance’s option is still preferable, WBD would have the right to terminate the deal with Netflix.
At the same time, WBD emphasizes that the agreement with Netflix is still valid, and the board of directors formally continues to recommend that shareholders support it until the Netflix response period ends and a final decision is made.
WBD is negotiating in parallel with Netflix and Paramount Skydance within the procedures set out in the agreement. It is these rules that give Netflix a short «window» to improve terms before WBD can legally move on to a deal with another buyer.
dev.ua previously reported on how Netflix has changed the terms of its deal with Warner Bros. Discovery and is now offering shareholders a cash buyout instead of a combination of cash and stock. The move is intended to simplify the deal structure and bring it to a vote more quickly, as rival Paramount Skydance raises the stakes.
