Warner Bros Says Paramount’s New $31-A-Share Offer Can Be A Superior Proposal Compared To Netflix’s Deal

Warner Bros. said that its board has not determined as to whether the revised PSKY proposal is superior to the merger with Netflix.

• The company said it will engage further with PSKY to determine if a proposal that constitutes a "Company Superior Proposal," as defined in the Netflix Merger Agreement, can be reached.
• WBD said that there can be no assurance that the Board will conclude that the transaction proposed by PSKY is superior to the merger with Netflix.
• Warner Bros. said that its Netflix Merger Agreement remains in effect. 

Warner Bros. Discovery (WBD) on Tuesday said that its board has determined that the revised proposal from Paramount Skydance Corporation (PSKY) could reasonably be expected to lead to a "Company Superior Proposal." 

The company said, however, that its board has not decided as to whether the revised PSKY proposal is superior to the merger with Netflix. 

Earlier in the day, WBD said that following engagement with PSKY during the seven-day limited waiver period, it received a revised PSKY proposal to acquire WBD, which the firm is reviewing in consultation with its financial and legal advisors.

Paramount Vs Netflix

Warner Bros. will engage further with PSKY to determine if a proposal that constitutes a "Company Superior Proposal," as defined in the Netflix Merger Agreement, can be reached.

In the event that its board determines such a "Company Superior Proposal" has been received, Netflix will have four business days to negotiate with WBD, and to propose any revisions to the Netflix transaction, it said. 

WBD said that there can be no assurance that the board will conclude that the transaction proposed by PSKY is superior to the merger with Netflix or that any definitive agreement or transaction will result from WBD's discussions with PSKY. 

The company said that its Netflix Merger Agreement remains in effect, and the board continues to recommend in favor of the Netflix transaction, and is not withdrawing or modifying its recommendation. 

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around WBD stock trended in ‘extremely bullish’ territory at the time of writing, while for PSKY and NFLX shares, it trended in ‘bullish’ territory. 

Shares of PSKY and NFLX have fallen 9.5% and 22% respectively in the past year. Meanwhile, WBD shares have risen 165.6% over the same period. 

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