Paramount Raises Warner Bros Discovery Bid to $31/Share
The Spin
Narrative A
Warner Bros Discovery's board continues backing the Netflix deal despite Paramount's raised bid because critical details remain unclear and informalized. Paramount hasn't provided a best-and-final offer with concrete terms on financing, covenants and contingencies in proper transaction documents. The Netflix merger delivers superior value when accounting for Discovery Global's equity worth, making the $31 verbal promise insufficient without binding commitments.
Narrative B
Paramount's revised $31-per-share offer is a superior proposal that Warner Bros Discovery must seriously consider after shareholder pressure forced renewed talks. The bid includes a $7 billion termination fee for regulatory failure, covers Netflix's breakup fee and adds quarterly payments if closing delays occur. Paramount has already achieved key Justice Department milestones, while Netflix faces expansive antitrust scrutiny about potential monopoly creation.