Paramount Shares Rise as Warner Bros. Reopens Acquisition Talks

Deep News
Feb 17

Shares of Paramount SkyDance (PSKY) moved higher after Warner Bros. (WBD) agreed to restart acquisition negotiations. Last week, Paramount made a new all-cash offer to acquire all shares of Warner Bros. for $30 per share. The proposal includes a "delay compensation" of $0.25 per share: if the deal is not completed by the end of this year, Warner Bros. shareholders will receive $0.25 per share each quarter as compensation. Warner Bros. stated that Paramount also informally proposed an acquisition plan at $31 per share. The current negotiation window is 7 days and will end on February 23, 2026, aiming to "clarify the situation for Warner Bros. shareholders and allow Paramount to submit a final best offer." Warner Bros. Chairman Samuel A. Di Piazza said in an announcement that the board still recommends accepting the acquisition proposal from Netflix, which is valued at approximately $82.7 billion but does not include all of Warner's businesses. He stated, "The merger proposal from Netflix offers significant value and has a clear regulatory approval path, which is in the best interests of Warner Bros. shareholders." Paramount's current offer of $30 per share values Warner Bros. as a whole at $108.4 billion. Netflix co-CEO Ted Sarandos testified last week before a Senate Judiciary subcommittee, denying claims that the deal would create a monopoly or lead to higher consumer prices.

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