Streaming giant Netflix (NFLX) has enough cash to raise its bid for Warner Bros. Discovery (WBD) if rival bidder Paramount Skydance (PSKY) submits an increased offer, Reuters reported Thursday, citing two sources.
The report comes after Warner Bros. agreed to return to the table to discuss with Paramount a “best and final” offer.
David Ellison caught David Zaslav’s attention after at least 10 failed bids for the HBO parent.
In his latest attempt, the Paramount CEO offered multiple sweeteners, including a “ticking fee” of up to $650M per quarter payable after 2026 if the regulatory approvals are delayed, and agreed to fund the $2.8B termination fee to Netflix.
WBD has clearly indicated it wants an offer higher than $31 per share for the whole company while also pointing out that Netflix retains the right to match the increased offer.
Paramount has not yet disclosed its final offer for Warner Bros. and has about four days to answer back.
Warner Bros. has set a special meeting date of March 20 to vote on the Netflix deal.