Warner Bros reopens takeover talks with Paramount after receiving waiver from Netflix
NEW YORK (AP) — Netflix is granting Warner Bros. Discovery a seven-day waiver allowing the studio to reopen takeover talks with Paramount Skydance.
Warner Bros. said in a regulatory filing Tuesday that the waiver will allow it to discuss unresolved “deficiencies” in Paramount’s previous offers.
Warner Bros. now has until Feb. 23 to negotiate a possible transaction with Paramount Skydance.
Previously, Warner’s leadership consistently has backed the offer from Netflix. In December, Netflix agreed to buy Warner’s studio and streaming business for $72 billion — now in an all-cash transaction that the companies have said will speed up the path to a shareholder vote by April. Including debt, the enterprise value of the deal is about $83 billion, or $27.75 per share.
Unlike Netflix, Paramount wants to acquire Warner’s entire company — including networks like CNN and Discovery — and went straight to shareholders with all cash, $77.9 billion offer in December.