Paramount Skydance (PSKY) has reportedly raised its bid for Warner Bros. Discovery (WBD) in its latest attempt to break up the media company’s planned merger with Netflix (NFLX).
The move comes just about two weeks after Paramount said it would foot the bill for the $2.8B breakup fee that would be payable to Netflix if the merger is called off. Variety reported earlier Monday that Paramount was preparing to raise its bid to $32 per share in cash for all of WBD.
Netflix, meanwhile, has offered $27.75 per share in cash, along with stock in a new publicly traded company called Discovery Global that would contain WBD’s cable network assets.
Paramount has until the end of Monday to submit its best and final offer for WBD, Variety reported.
Here’s what company officials and analysts have been saying about the bidding war.
Netflix Co-CEO Ted Sarandos:
“The next move is up to somebody else. We have a signed deal with Warner Bros. Discovery. If someone wants to make a better deal, which the Warner Bros. Discovery board has said has not happened yet, then we’ll see what happens down the road. But let’s not get ahead of that process. And I certainly wouldn’t comment on the bidding strategy anyway,” Sarandos told Variety on Friday.
“But the core of it is, you know, we’re super-disciplined buyers; as you probably know, we have a reputation for such, so I’m willing to walk away and let someone else overpay for things. We have a rich history of that,” Sarandos added.
Robert Fishman, media analyst, MoffettNathanson:
“While we see the longer-term benefits of owning Warner Bros., HBO, and HBO Max, we expect [Netflix] to walk away from the deal following a disciplined approach if [Paramount] pushes its bid well beyond $32 per share,” Fishman said in a note on Monday, according to MarketWatch.
“We think it will be difficult for [Paramount] to win the bidding war for [Warner Bros.] if it decides to take a less aggressive approach during this waiver period, giving [Netflix] the opportunity to match at a more modest increase from its current bid,” he added.
Gary Black, managing partner, The Future Fund:
“We continue to believe NFLX will be the ultimate victor in this battle, given a much stronger balance sheet and greater potential synergies of both new content and cost reductions,” Black said in a post on X on Monday.
LVS Advisory, analyst, Seeking Alpha:
“I am neutral on the Warner deal. I don’t believe Netflix needed to acquire a major studio but was simply being opportunistic when Warner went up for sale,” LVS said in an article on Netflix on Feb. 18. “Netflix’s stock should perform well with or without the Warner deal over the next 3 years and beyond.”