The takeover battle for Warner Bros. Discovery (WBD) has escalated again with the company confirming it had received a revised proposal from Paramount Skydance Corporation (PSKY) that counters an offer from Netflix.
The media and entertainment company said it was reviewing the offer with its financial and legal advisors and would update shareholders after the Board's review.
But Warner Bros. said it continued to recommend the Netflix transaction, which remained in effect.
“WBD shareholders are advised not to take any action at this time with respect to the amended PSKY tender offer,” Warner Bros. said in a media release.
The latest offer is higher than Paramount's previous bid of $30 per share in cash, or US$108.4 billion (A$153.5 billion) including debt, Reuters quoted a source familiar with the matter as saying in this article.
The revised Paramount came in the wake of discussions between the companies to address the Warner Board's concerns with previous bids.
Under Netflix's proposal, Warner Bros.' cable television networks would be spun off into a separately traded company, Discovery Global.
Netflix is offering $27.75 cash per share or $82.7 billion at an enterprise level for Warner Bros. Discovery’s studios and streaming businesses while Paramount Skydance Paramount’s offer is for the whole company.
Warner Bros. Discovery shares (NASDAQ: WBD) closed 23 cents (0.08%) higher at $29.15 on Tuesday (Wednesday AEDT), capitalising the company at $72.29 billion.
Paramount Skydance (NASDAQ: PSKY) shares ended down 17 cents (1.61%) at $10.39, capitalising it at $11.13 billion
