Feb 17 - Warner Bros Discovery has rejected Paramount Skydance’s latest $30-a-share hostile takeover bid, but is giving the Hollywood studio seven days to see if it can come up with a better deal to buy the owner of HBO Max and the “Harry Potter” franchise, Warner Bros said in a statement.
Paramount informally broached an even higher share price, $31 a share, Warner Bros said, apparently enticing the board to the table.
The rival bidder now has until February 23 to submit its “best and final offer,” which Netflix is allowed to match under the terms of the merger agreement, Warner Bros said on Tuesday.
“To be clear, our Board has not determined that your proposal is reasonably likely to result in a transaction that is superior to the Netflix merger,” Warner Bros Chairman Samuel DiPiazza Jr. and CEO David Zaslav said in a letter sent Tuesday to the Paramount board. “We continue to recommend and remain fully committed to our transaction with Netflix.”
An unidentified Paramount financial advisor said their offer would be raised to $31 a share if Warner Bros agreed to open negotiations, and they could go even higher, Warner Bros said in the letter, adding that it now expects a best and final proposal to include a price above that amount.
