Multiple media reports say that Warner Bros. Discovery’s (WBD) board of directors is considering starting acquisition talks with Paramount Skydance (PSKY).
The potential negotiations come after Paramount amended its hostile takeover bid for Warner Bros.
Warner Bros. in December agreed to sell both its film studio and HBO Max streaming service to Netflix (NFLX) for $27.75 U.S. per share.
Paramount Skydance launched a rival hostile bid for Warner Bros. last December, promising WBD shareholders $30 U.S. a share in an all-cash deal.
The offer from Paramount would also include the company’s specialty television channels such as HGTV and The Food Network.
Now, Paramount has reportedly upped the ante, saying it will add $0.25 U.S. a share to its offer for any delay in regulatory approval of the acquisition.
The additional fee would amount to $650 million U.S. in cash per quarter for each quarter that the deal has not closed by Dec. 31 of this year.
Paramount also said it will cover a $2.8 billion U.S. termination fee that would need to be paid to Netflix if the Warner Bros. deal is terminated.
Both Paramount and Netflix have said they would be willing to raise their bids to purchase Warner Bros.
This would be the first time that Warner Bros.’ board considers Paramount’s rival offer. Previously, Warner Bros. dismissed Paramount’s hostile bids in favour of the Netflix deal.
Owing to the takeover battle, WBD stock has risen 164% in the last 12 months to trade at $27.99 U.S. a share.
