Previously, Paramount announced its intention to acquire shares of Warner Bros. at a price of $30 per share. Now, the new offer includes an amount of $31 per share, which is a significant step forward.
Warner Bros. confirmed that it will continue discussions with Paramount before making a final decision on the deal with Netflix, which was reached last December. Netflix, for its part, has not yet commented on the situation, although they had four days to present a counteroffer.
In an interview with the BBC, Netflix CEO Ted Sarandos dodged a question about the possibility of further competition for Warner Bros., stating, "I don’t want to make hypothetical assumptions. We really like the current situation, and we have always been disciplined buyers."
The parameters of the new offer include a payment of $31 per share in cash, as well as additional funds in case of a delay in completing the deal. Paramount has also agreed to pay $7 billion if the deal falls through and to cover $2.8 billion that Warner Bros. will have to pay Netflix in case the merger fails.
Meanwhile, Warner Bros. plans to spin off its business, including traditional television channels and CNN, into a standalone company. Lawmakers are expressing concerns about potential monopolies and influence on the entertainment industry.
At recent hearings in Washington, Sarandos was questioned about potential price increases and the future of cinemas. Attention was also drawn to the Allison family's connections with the Trump administration, raising concerns among Democrats.
