Seven days to negotiate: why WBD agreed to resume talks with Paramount
17 February 19:34
American media corporation Warner Bros. Discovery (WBD) has agreed to temporarily resume negotiations on a possible sale with rival studio Paramount Skydance, reports "Komersant Ukrainian".
According to Bloomberg , the decision was made possible after WBD reached an agreement with streaming giant Netflix, which allows Warner Bros. to conduct alternative negotiations with Paramount on a new offer for seven days.
Why negotiations resumed
The key signal was a message from Paramount’s banker to one of the members of the WBD board of directors: the studio is ready to offer at least $31 per share if negotiations are resumed.
This is
- $1 more than Paramount’s previous offer;
- and, according to the company, not the “best and final” price, meaning there is room for further increases.
Thus, Paramount has effectively made it clear that it is ready to outbid Netflix, at least in the short term.
Warner Bros. Discovery’s position
Despite the opening of the negotiation “window,” the WBD board of directors is not changing its recommendation: it continues to unanimously advise shareholders to support the deal with Netflix.
This involves the sale of Warner Bros. Studios and the HBO Max streaming business for $27.75 per share.
A shareholder vote on the deal is scheduled for March 20.
WBD CEO David Zaslav emphasized that the company is guided by two criteria:
maximum value and maximum certainty for shareholders.
Why it matters
Warner Bros. Discovery is not just a studio, but one of the largest content libraries in the world. Key assets include:
- the Harry Potter and Game of Thrones franchises;
- the cult TV series Friends;
- the DC Comics universe;
- world cinema classics Casablanca and Citizen Kane.
Control over these assets means a strategic advantage in the global war between streaming services and studios.
