"Warner Bros. was given 10 business days to respond to Paramount's hostile $30-a-share bid for the company on Monday. Since that offer was already rejected once, the Warner Bros. board isn't planning to cancel the merger agreement signed last week with Netflix, according to people familiar with the company's thinking. Doing so would require Warner Bros. to pay Netflix a $2.8 billion termination fee."
"That puts the onus on Paramount to make the next move in what everyone expects to be a drawn-out affair lasting months. Does the purchase price "move up another $5 or $10 billion? I think it probably does," Kevin Mayer, the former top dealmaker at Walt Disney Co., said at the UBS media conference on Tuesday. "Going directly to shareholders with the same deal that the board rejected probably doesn't win it.""
Paramount launched a hostile $30-per-share bid and gave Warner Bros. 10 business days to respond. Warner Bros. plans to uphold its merger agreement with Netflix because canceling would trigger a $2.8 billion termination fee. Paramount can pursue a Jan. 8 tender offer, extend the bid, sue to stop the Netflix deal, or increase its offer. Industry observers expect the contest to stretch months into 2026 and anticipate acquisition prices rising by billions. Paramount values Warner Bros. at $108.4 billion including debt. Netflix is offering a mix of cash and stock, and both suitors can increase their bids.
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