Refusing to take “No” for an answer, like a drunken cheerleader at an frat party, Paramount’s sheer persistence may be winning through.
A report from Bloomberg claims that Warner Bros Discovery is anctively considering re-opening talks with Paramount Skydance as their numerous attempts at a hostile intervention have actually opened the way to a superior deal to the one Netflix has on the table.
This could mean that a bidding war is launched.
Alternatively, Netflix could also say “F*ck this!” and walk away if Warner Bros. seems to be going wobbly.
He report says the board hasn’t reached a decision yet on how to proceed.
As markets never like a takeover, as shareholders prefer it if capital is returned to them rather than spent, Netflix shares have been under pressure as this dragged on, down 40% since June. A bidding war would impact this further.
Paramount moved to bake in the $2.8 billion fee owed to Netflix if Warner Bros. terminates its agreement into their offer to allay Warner fears over talking to them.
They will also underwrite the Warner Bros. debt refinancing required if the deal doesn’t go through in 2026.
This takes away two areas of concern for EBD.
Netflix would need to be told, and have a right to match the Paramount deal, if this opens up again.
