Warner Bros ‘reviewing’ new takeover bid from Paramount

Warner Bros Discovery said it has received a revised acquisition proposal from Paramount Skydance, even as the US media giant's board reaffirmed its support for a previously announced buyout deal with Netflix. Photo / Robyn Beck, AFP

Warner Bros Discovery said it has received a revised acquisition proposal from Paramount Skydance, even as the US media giant’s board reaffirmed its support for a previously announced buyout deal with Netflix.

The sweetened offer was the latest instalment of a bidding war set to reshape Hollywood and US media, and has drawn White House attention, with US President Donald Trump insisting he will have a say on the deal.

“We received a revised [Paramount] proposal to acquire WBD, which we are reviewing in consultation with our financial and legal advisers,” the Warner Bros board said, adding it would update shareholders once the review was complete.

Terms of Paramount’s new offer were not disclosed, and the Warner Bros board was careful to signal its preference for the rival Netflix deal.

The deal with the streaming giant “remains in effect” and directors “continue to recommend in favour of the Netflix transaction”, the statement said.

Warner Bros shareholders were advised to take no action with respect to the Paramount offer while the review is ongoing.

Paramount also confirmed the proposal and acknowledged that its sweetened bid could be countered by Netflix if the Warner Bros board formally declared that Paramount’s offer is a “superior proposal”.

In its previous bid, Paramount Skydance had sought to buy all of Warner Bros Discovery for US$108 billion ($180b).

Though that was rebuffed by Warner’s board, Paramount said this week it was still encouraging shareholders to back its offer, in what amounts to a hostile takeover attempt.

Paramount has also launched a lawsuit against Warner Bros over an alleged lack of transparency in its dealings with Netflix.

Netflix is offering US$83 billion for its more limited merger but is expected to be prepared to raise its offer to more closely match its rival’s new bid.

The Netflix offer does not include Warner Bros television properties such as CNN and Discovery, which would belong to a newly created publicly traded company if the deal is sealed.

Trump has said he will be “involved” in any decision on the merger, and the US Department of Justice is currently reviewing Netflix’s proposed acquisition. European authorities and other regulators will also have their say.

Questions are swirling over whether politics will influence the outcome of the battle, with Paramount run by David Ellison and financed largely by his father, Oracle tycoon Larry Ellison, a longtime Trump ally.

A victory by Paramount would see CNN – often the target of Trump’s stinging threats and criticism – pass to Ellison family control, amid criticism that their takeover of Paramount-owned CBS brought changes to the news division more to the White House’s liking.

Trump late Saturday called on Netflix to fire board member Susan Rice or “pay the consequences”, after she said Democrats would push for corporate accountability if they regain power in the November midterm elections.

“He likes to do a lot of things on social media. This is a business deal. It’s not a political deal,” Netflix co-CEO Ted Sarandos told BBC Radio 4, when asked about Trump’s threat.

-Agence France-Presse