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Warner Bros. Discovery Names Paramount’s $31-a-Share Bid Superior as Netflix Bows Out

Netflix declines to match, clearing a path for Paramount’s $31‑per‑share bid pending regulatory review.

Overview

  • Warner Bros. Discovery’s board determined Paramount Skydance’s revised proposal is a company superior proposal, starting a four‑business‑day match period for Netflix earlier Thursday.
  • Hours later, Netflix said it would not raise its $27.75‑per‑share offer for the studios‑and‑streaming assets, effectively exiting the bidding.
  • Paramount’s all‑company offer includes $31 per share in cash, a $7 billion reverse termination fee, a 25‑cent per‑share quarterly ticking fee after Sept. 30, and payment of WBD’s $2.8 billion break fee owed to Netflix.
  • Financing support includes roughly $45.7 billion in equity from the Ellison Trust and about $57.5 billion in bank debt commitments, with additional equity pledged if required by lenders.
  • The Netflix merger agreement technically remains in place until terminated, with a March 20 shareholder vote still scheduled and U.S. Justice Department and international reviews ongoing.