Warner Bros. Discovery has rejected a 30 dollar per share takeover bid from Paramount Skydance but says it is open to a “best and final” offer within seven days. The board said on Tuesday it remains fully committed to its proposed merger with Netflix, with shareholders due to vote on that deal on 20 March.
In a letter to Paramount, Warner Bros chairman Samuel DiPiazza Jr and chief executive David Zaslav said the current proposal was not reasonably likely to produce a superior transaction to the Netflix merger. Paramount is expected to consider raising its offer to 31 dollars per share, which Netflix would be allowed to match. Paramount has said the board did not meaningfully engage with six previous approaches made before the Netflix agreement was announced on 5 December.
Also Read: Warner Bros Rejects Paramount Takeover Bid, Backs Netflix Deal
Both potential deals face regulatory scrutiny in Washington amid concerns about media consolidation. Paramount’s earlier revised bid, backed by a 40 billion dollar equity guarantee from Oracle founder Larry Ellison, was rejected in January. Shares in Paramount Skydance rose 7.4 percent in midday trading, while Netflix gained 0.4 percent and Warner Bros Discovery was up 3.4 percent.
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