Streaming giant Netflix (NFLX) has granted Warner Bros. Discovery (WBD) a seven-day waiver
to enter acquisition talks with rival Paramount Skydance (PSKY).
Warner Bros. said the negotiating period will give its board of directors’ time to explore “deficiencies” with Paramount Skydance’s takeover offer.
Warner Bros. Discovery has accepted Netflix’s offer to buy its streaming and movie studio businesses for $72 billion U.S. in cash, or $27.75 U.S. per share.
However, Paramount Skydance launched a hostile offer straight to Warner Bros. Discovery’s shareholders at $30 U.S. a share.
Until now, Warner Bros. Discovery’s board has supported Netflix’s offer and dismissed Paramount Skydance’s competing bid as inferior.
Paramount has sweetened its offer with additional enhancements, but stopped short of raising its per-share offer price.
Netflix retains the right to match any revised takeover offer from Paramount Skydance should negotiations with Warner Bros. progress that far.
Warner Bros. Discovery’s Chief Executive Officer (CEO) David Zaslav said in a written statement that his focus is on “maximizing value and certainty for WBD shareholders.”
Warner Bros. has scheduled a special meeting of its shareholders for March 20 to vote on its sale and said its board continues to recommend the Netflix deal.
Netflix said in its own statement that the Warner Bros. shareholder meeting marks an “important milestone for our transaction with WBD.”
The takeover battle has propelled WBD stock 164% higher over the last 12 months to trade at $27.99 U.S. a share.
Related Stories
