The Warner Bros. studio lot in Burbank, Calif.Mike Blake/Reuters
Warner Bros. Discovery WBD-Q said Paramount PSKY-Q has raised the price of its takeover offer to US$31 per share, potentially setting the stage for a fresh bidding war with Netflix NFLX-Q over the future of the Hollywood giant.
The company previously offered US$30 per share when it first went directly to Warner stakeholders with its all-cash, hostile bid in December – just days after Warner struck a deal to sell its studio and streaming business to Netflix for US$27.75 per share.
Beyond upping its proposed purchase price, Warner said Paramount had increased its regulatory termination fee to US$7-billion. Paramount also agreed to move up a previously promised “ticking fee” payable to shareholders.