In the latest development in the saga between Warner Bros. Discovery (WBD), Netflix, and Paramount, it appears that WBD is sticking with its original agreement with Netflix.
According to a new report from Bloomberg, the WBD Board of Directors is planning on telling investors to reject Paramount’s latest bid for the company. The report states that the Board’s decision is based on what they believe to be a better offer from Netflix.
“After deliberating and reviewing the Paramount bid, the Warner Bros. board still views the company’s existing agreement with Netflix Inc. as offering greater value, certainty and terms than what Paramount has proposed,” the Bloomberg report (paywall) reads.
WBD and Netflix first announced a deal that would see the Warner side of the company be acquired in a deal worth $82.7 billion in total enterprise value and $27.75 per share. The Paramount proposal, that came after the Netflix deal was announce, was for the entirety of the company for $30 per share. That offer seemingly put the value of the television networks and other aspects of the company at a value of just $2.25 per share, if you want to keep the same $27.75 value of the WBD Streaming & Services side.
The news of the rejection shouldn’t come as much of a surprise. Not long after receiving the “hostile” and “unsolicited” offer from Paramount, a WBD release stated that the board wouldn’t be “modifying its recommendation” of the Netflix deal.
It should be mentioned, however, that just because the Board recommends the Netflix deal be chosen, there is always the possibility that the investors vote otherwise. If the Netflix deal moves forward, however, the streaming giant’s acquisition of Warner Bros. is planned to close after WBD completes its split into two companies in 2026. Should that happen, Netflix would own all of Warner Bros. Games properties, including Mortal Kombat, DC, Harry Potter, and more.
What do you think about the latest development in the pending sale of Warner Bros. to Netflix, and the rejection of Paramount’s offer? Leave your thoughts down below and join the discussion in the official Insider Gaming Discord server.
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Mike has been covering the gaming industry since 2012, and has reported on some of the largest events in the industry while also working as an investigative reporter. Outside of…
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