{"id":288894,"date":"2026-02-17T21:58:11","date_gmt":"2026-02-17T21:58:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/288894\/"},"modified":"2026-02-17T21:58:11","modified_gmt":"2026-02-17T21:58:11","slug":"paramount-prepared-to-engage-in-constructive-discussions-as-warner-bros-reopens-sale-talks","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/288894\/","title":{"rendered":"Paramount Prepared to Engage in \u2018Constructive Discussions\u2019 as Warner Bros. Reopens Sale Talks"},"content":{"rendered":"

Paramount Skydance says it\u2019s \u201cprepared to engage in good faith and constructive discussions\u201d after Warner Bros. Discovery reopened negotiations around its $30 per share takeover bid<\/a> and gave the company until Feb. 23 to provide a \u201cbest and final\u201d offer.<\/p>\n

However, Paramount said it would continue to advance its $108.4 billion tender offer, maintain its proxy solicitation in opposition to Netflix\u2019s $83 billion deal<\/a> and proceed with its efforts to nominate a slate of directors at WBD\u2019s upcoming annual meeting.<\/p>\n

\u201cThe WBD Board has chosen to avoid making the customary determination under the Netflix merger agreement that Paramount\u2019s superior $30 per share all-cash offer \u201ccould reasonably be expected to result in\u201d a superior proposal, which would have given it an unfettered right to negotiate without a time deadline,\u201d Paramount said in a statement. \u201cAlthough the Board\u2019s actions are unusual, Paramount is nonetheless prepared to engage in good faith and constructive discussions.\u201d<\/p>\n

During the seven-day period, Paramount and Warner\u2019s board will discuss the unresolved deficiencies and clarify certain terms in the former\u2019s latest amended $30 per share offer. However, WBD continues to recommend Netflix\u2019s 83 billion deal and is urging shareholders to vote against the Paramount offer.<\/p>\n

\u201cWe continue to believe the Netflix merger is in the best interests of WBD shareholders due to the tremendous value it provides, our clear path to achieve regulatory approval and the transaction\u2019s protections for shareholders against downside risk,\u201d WBD board chairman Samuel Di Piazza Jr. said. \u201cWith Netflix, we will create a brighter future for the entertainment industry \u2013 providing consumers with more choice, creating and protecting jobs and expanding U.S. production capacity while increasing investments to drive the long-term growth of our industry.\u201d<\/p>\n

A shareholder vote on the Netflix deal has also been set for March 20 at 8 a.m. ET.<\/p>\n

Paramount reiterated that its $30 per share deal offers a higher value and \u201cmore expeditious and certain path to closing a transaction\u201d than Netflix, which it claimed would offer a minimum of\u00a0$21.23 to a maximum of\u00a0$27.75 per share.<\/p>\n

It also touted the addition of a 25 cent per share \u201cticking fee,\u201d which is the equivalent of approximately $650 million cash value that would be paid to shareholders for every quarter the transaction is not closed beyond Dec. 31, 2026.<\/p>\n

Additionally, Warner Bros. board said that Paramount agreed to bump its bid up to at least $31 per share just for reopening talks, an increase that is not its \u201cbest and final\u201d offer.<\/p>\n

Netflix has blasted Paramount\u2019s antics as an \u201congoing distraction\u201d and accused the company of repeatedly mischaracterizing the regulatory review process by claiming its takeover bid would sail through.<\/p>\n

It also warned that the Paramount offer would create \u201csignificant horizontal overlaps\u201d that will concern antitrust enforcers, including combining two of the five major Hollywood studios, two major theatrical distribution channels, two of the major TV studios, two major news networks and two major sports distributors.<\/p>\n

Additionally, the streamer argued that Ellison\u2019s \u201caggressive financing package, rapid deleveraging plans, and performance track record pose tremendous risks to both the completion of their proposed deal and the industry\u201d and that Paramount would be over-leveraged with approximately $84 billion in debt.<\/p>\n

In order to reach the midpoint of its leverage targets, Netflix claimed Paramount would need to realize roughly $16 billion of cost savings \u2014 far in excess of its previously disclosed $6 billion synergy figure \u2014 through \u201cgreater, even deeper job cuts that would irreparably harm the entertainment industry.\u201d It added that Paramount is undershooting its guidance for 2026 adjusted operating income by 15%, which could mean even more cost cuts.<\/p>\n

Meanwhile, Netflix said its own deal with Warner Bros. would \u201cdeliver more choice and greater value to audiences worldwide with expanded access to exceptional films and series \u2013 both at home and in theaters.\u201d<\/p>\n

It also said the deal \u201cis centered on growth, opportunity, and a reinforced commitment to creating world-class films and television \u2013 not consolidation and layoffs\u201d and would expand production capacity, increase its investment in original content and create jobs.<\/p>\n

Additionally, the company expressed confidence that its deal with Warner Bros. has a \u201cclear path to timely regulatory approval.\u201d It has already submitted its Hart-Scott-Rodino (HSR) filings and is engaging constructively with competition authorities across the world, including the U.S. Department of Justice (DOJ), state attorneys general, the European Commission, and the U.K. Competition and Markets Authority (CMA).<\/p>\n

Netflix has said its deal would close within 12 to 18 months, while Paramount has said a potential deal would close within a year.<\/p>\n

The post Paramount Prepared to Engage in \u2018Constructive Discussions\u2019 as Warner Bros. Reopens Sale Talks<\/a> appeared first on TheWrap<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Paramount Skydance says it\u2019s \u201cprepared to engage in good faith and constructive discussions\u201d after Warner Bros. Discovery reopened…\n","protected":false},"author":2,"featured_media":288895,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[160450,11948,156,1094,111,139,69,68338,160451,437,5942],"class_list":{"0":"post-288894","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-tv","8":"tag-constructive-discussions","9":"tag-david-ellison","10":"tag-entertainment","11":"tag-netflix","12":"tag-new-zealand","13":"tag-newzealand","14":"tag-nz","15":"tag-paramount-skydance","16":"tag-regulatory-approval","17":"tag-tv","18":"tag-warner-bros"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/288894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=288894"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/288894\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/288895"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=288894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=288894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=288894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}