Warner Bros gives Paramount a week to make ‘best and final’ offer

Warner Bros. Discovery (WBD) has initiated a seven-day period for discussions with Paramount, ending on February 23, 2023. This timeframe is intended for Paramount to present its "best and final" offer for WBD, which has previously rejected multiple offers from Paramount, all at $30 per share in cash. The ongoing negotiations come amid speculation about whether Paramount will increase its bid to over $31 per share, as suggested by WBD's board (Deadline, Financial Times, Variety). Despite these discussions, WBD continues to support its merger agreement with Netflix, which was unanimously approved by its board in December. A shareholder vote on the Netflix deal is scheduled for March 20, 2023. WBD has expressed the need for clarity for its stockholders while also allowing Paramount to make a more competitive offer (Deadline, Hollywood Reporter). In the context of these negotiations, Netflix has criticized Paramount for what it describes as misleading Warner shareholders regarding the regulatory landscape surrounding the merger. Netflix hopes that the discussions between WBD and Paramount will resolve outstanding concerns and clarify the situation for all parties involved (Deadline). The M&A situation surrounding Warner Bros. Discovery is intensifying as the deadline for Paramount's final offer approaches (Variety).