Warner Bros. has announced it will resume takeover discussions with Paramount Skydance after receiving a seven-day waiver from its preferred bidder, allowing negotiations to address previously unresolved issues, reports Baltimore Chronicle via ABC.
In a regulatory filing on Tuesday, Warner Bros. stated that the temporary waiver permits the company to engage with Paramount to clarify and potentially resolve deficiencies in Paramount’s earlier acquisition proposals. The company now has until Monday to explore a possible transaction with Paramount Skydance.
Netflix, the current preferred bidder for Warner Bros., said in a statement that while its offer provides superior value and certainty, it acknowledged the ongoing distraction for Warner Bros. Discovery shareholders and the wider entertainment sector caused by Paramount’s approach. “Accordingly, we granted WBD a narrow seven-day waiver of certain obligations under our merger agreement to allow them to engage with PSKY to fully and finally resolve this matter,” Netflix added.
Despite reopening discussions with Paramount, Warner Bros. emphasized that its board continues to unanimously recommend that shareholders approve the Netflix acquisition. Company leadership has consistently supported Netflix’s bid, which was agreed upon in December as a $72 billion all-cash transaction covering Warner Bros.’ studio and streaming operations. Including debt, the enterprise value of the deal is estimated at $83 billion, equating to approximately $27.75 per share, and is expected to accelerate the shareholder vote process by April.
Paramount Skydance, unlike Netflix, aims to acquire Warner Bros. in its entirety, including assets such as CNN and Discovery. The company previously approached shareholders directly with a $77.9 billion all-cash offer last December.
Warner Bros. has scheduled a special meeting for Friday, March 20. Following the announcement of the waiver, Warner Bros.’ shares rose more than 2% in pre-market trading, Paramount Skydance stock increased nearly 3%, and Netflix’s shares saw a modest rise.
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