Warner Bros. Discovery (WBD) has given Paramount Skydance (PSKY) seven days to come up with their “best and final offer” and rejected the latest amended offer made by David Ellison’s company.
Warner Bros. on Tuesday indicated that it expects a higher offer than $31 per share from Paramount and will begin holding discussions with them to address “deficiencies that remain unresolved and clarify certain terms.”
“Following receipt of PSKY’s latest amended offer, a senior representative for PSKY informed a WBD Board member that, if the WBD Board authorized discussions, PSKY would agree to pay $31 per share and that the offer was not PSKY’s ‘best and final’ proposal,” according to the press release.
“This price, along with several other matters that PSKY stated it would address in its February 10 letter, are not reflected in the latest merger agreement that PSKY proposed,” WBD added.
WBD noted that Paramount’s last amended offer addressed only some concerns. Ellison’s latest offer notably included a “ticking fee” of up to $650M each quarter after 2026 if the regulatory approvals are delayed.
The HBO parent said it has received a limited waiver from Netflix (NFLX) until February 23 to hold discussions with Paramount. They also pointed out that Netflix retains the right to match Paramount’s final offer.
Warner has set a March 20 date for a special meeting of stockholders to vote on the transaction with Netflix.