Warner Bros. Discovery’s board announced on Thursday that they have deemed Paramount Skydance’s latest offer as a “superior proposal” compared to their existing agreement with Netflix. This decision initiates a four-day window for Netflix to present a counteroffer to the nearly $83 billion deal that was initially struck with WBD in early December.
According to a statement released by WBD, they have informed Netflix of their determination that the proposal from Paramount Skydance constitutes a “Company Superior Proposal.” This notification triggers a period of four business days during which Netflix has the opportunity to propose revisions to their merger agreement in order to make the Paramount Skydance offer no longer superior. If, after this period, the Board, in consultation with its financial and legal advisors, still deems the PSKY proposal as superior, WBD would have the right to terminate the Netflix merger agreement.
Netflix now has until Wednesday, March 4 at 11:59 p.m. ET to come up with a new proposal to salvage the deal. Paramount Skydance’s chief, David Ellison, expressed satisfaction with WBD’s board’s affirmation of the superior value of their offer, emphasizing that it delivers superior value, certainty, and speed to closing for WBD shareholders.
In response to these developments, Netflix co-CEO Ted Sarandos is reportedly in Washington, D.C. today, lobbying Trump administration officials on the deal. The Netflix-WBD agreement has drawn significant attention in the midst of a politically charged environment, with the Justice Department conducting a regulatory review that will scrutinize various aspects of Netflix’s business.
Warner Bros. outlined the key components of the revised Paramount Skydance bid that led to their decision. This includes a purchase price of $31.00 per WBD share in cash, a daily ticking fee post-September 30, 2026, a regulatory termination fee of $7 billion payable by PSKY in case of non-closure due to regulatory issues, among other provisions.
As the situation unfolds, stay tuned for more updates on this evolving story.
