Warner Bros. considers restarting acquisition talks with Paramount, adding new uncertainty to Hollywood consolidation

Gelonghui, February 16th｜According to informed sources, Warner Bros. Discovery is considering restarting sale negotiations with rival Hollywood studio Paramount Skydance, after receiving the latest revised offer from this hostile bidder. Sources said that members of the Warner Bros. board are discussing whether Paramount can offer a path to a better deal, a move that could trigger a second round of bidding war with Netflix. The board has not yet decided how to respond, and there is still a binding agreement with Netflix. Paramount submitted revised terms last week, addressing several concerns. If Warner Bros. terminates the agreement with Netflix, Paramount will bear the $2.8 billion breakup fee payable to Netflix and provide guarantees for Warner Bros.' debt refinancing. Paramount also stated that if the deal is not completed by December 31, it will compensate Warner Bros. shareholders, highlighting its confidence that the deal can quickly obtain regulatory approval.