Warner Bros. Considering Restarting Sale Talks With Paramount — Report

Warner Bros. is reportedly considering whether to restart sale talks with Paramount Global, which might complicate its deal with Netflix. According to a new report, members of the company’s board have discussed the possibility of reopening discussions after Paramount submitted a revised offer.

Warner Bros. reportedly considering to restart talks with Paramount

Warner Bros. Discovery is reportedly evaluating whether to reopen discussions with Paramount Global, even as it remains under a binding deal with Netflix. According to Bloomberg, members of WBD’s board have held conversations about potentially re-engaging with Paramount following a revised offer.

Paramount, backed by Skydance, is pursuing a $108.4 billion cash transaction directly with Warner Bros. Discovery shareholders in an effort to disrupt the previously agreed Netflix deal. As part of its amended proposal, Paramount has stated that it would cover the approximately $2.8 billion breakup fee owed to Netflix if WBD exits the existing agreement.

According to the publication, Paramount is also “offering to backstop a Warner Bros. debt refinancing. Paramount also said it will compensate Warner Bros. shareholders if the deal doesn’t close by December 31.” As of now, Warner Bros. Discovery has not formally stated that it plans to exit or revise its current agreement with Netflix.

Warner Bros. Discovery has previously identified concerns related to Paramount Global’s proposal, referencing issues it set out in earlier statements. However, this is the first time the board has considered that Paramount’s proposal could potentially lead to a better deal or prompt Netflix to increase its bid. In addition, Warner Bros. Discovery has faced pressure from some shareholders to open discussions with Paramount.

Meanwhile, Netflix executives have addressed questions about how the acquisition would affect Warner Bros.’ theatrical operations. During a recent Senate hearing, co-chief executive Ted Sarandos said, “[45 days] is the industry standard for self-enforcement. However, routinely, movies that underperform, the window moves a little bit. Superman was a little shorter window. And Sinners was a little longer window (via Comic Book Movie).”

Source: Comingsoon.net