Paramount Extends Hostile Warner Bros Bid Deadline to February 20

Paramount Skydance has extended the deadline on its hostile tender offer for Warner Bros Discovery to February 20, giving itself more time to convince shareholders that its bid surpasses Netflix’s rival offer. The extension comes after only 168.5 million Warner Bros shares, representing 6.8% of the company’s stock, were tendered by the original January 21 deadline.

A successful deal would grant the acquirer ownership of iconic franchises, from Friends to Batman, along with the HBO Max streaming service, reshaping Hollywood’s entertainment landscape.

Netflix All-Cash Offer and Paramount’s Challenge

Netflix recently revised its $82.7 billion offer for Warner Bros Discovery to an all-cash deal, hoping to expedite closure and provide certainty to investors. The streaming giant is now offering $27.75 per share, approved unanimously by Warner Bros’ board.

Paramount, meanwhile, has not raised its bid, which stands at $108.4 billion or $30 per share. Analysts note that Paramount would likely need to increase its offer to re-engage in deal negotiations.

Paramount has launched a charm offensive and sued Warner Bros WBD.O to bring the HBO owner to the negotiating table.

Shareholder Vote Likely to Decide Winner

The final outcome of the battle is expected at a shareholder vote, likely by April, where Warner Bros investors will weigh the value of cable assets, which Paramount argues are largely worthless.

Paramount plans to urge shareholders to vote against what it calls “the inferior Netflix transaction”, once regulatory approval from the U.S. SEC is obtained.

Executive Moves and Regulatory Insights

• Netflix co-CEO Ted Sarandos will testify at a U.S. Senate committee next month.

• Warner Bros Chief Revenue Officer Bruce Campbell is also scheduled to appear at the hearing.

• Paramount has indicated it would seek to replace Warner Bros board members if shareholders reject Netflix’s deal.

Paramount’s Arguments Against Netflix Deal

Paramount claims Netflix’s offer offloads $17 billion in debt to Discovery Global, which houses Warner Bros’ cable assets, reducing shareholder value.

• Warner Bros’ advisers valued Discovery Global between $1.33 to $6.86 per share, depending on the spinoff structure.

• Paramount argues its offer is superior with a clearer path to regulatory approval, partly citing the Ellisons’ connections with former President Donald Trump as advantageous for regulatory clearance.

Market Reactions

• Paramount shares rose 1.9%.

• Netflix shares fell 2.4%.

• Warner Bros shares were mostly unchanged.

The corporate tussle underscores the high stakes in acquiring Hollywood content libraries and streaming platforms, with billions at play.

Analysts’ Take

Analysts note that while the Netflix deal could offer quick closure, it comes with:

• Uncertainty around integration costs

• Large debt load

• Content spending pressures

Paramount’s strategy focuses on presenting a more stable and financially transparent path for shareholders, arguing that its bid offers “tremendous and certain value.”

Conclusion:

The Paramount–Warner Bros acquisition battle has intensified with a deadline extension to February 20, setting the stage for a high-stakes shareholder showdown. As Netflix pursues its $82.7B all-cash offer, Paramount relies on regulatory advantages and shareholder support to secure control over Warner’s iconic franchises and HBO Max. The winner will reshape Hollywood’s content and streaming landscape for years to come.