Key Points
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Paramount Skydance has increased its takeover bid for Warner Bros. Discovery to $31 per share.
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Netflix shares rose slightly after declining by 24% since the acquisition plans were announced.
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The U.S. Department of Justice has launched an investigation into Netflix over potential antitrust concerns regarding the acquisition.
Paramount Skydance raised its bid for a complete acquisition of Warner Bros. Discovery on Wednesday, now at $31 per share, prompting Warner Bros.’ board to view this proposal as potentially superior to the ongoing negotiation with Netflix (NASDAQ: NFLX). This deal follows Netflix’s $200 billion proposal, which may include sale structures that require it to match any superior bid.
As of the latest reports, Netflix faces a tight timeframe; if Paramount’s offer is deemed better by Warner Bros., Netflix will have four days to respond. Despite the pressure, Netflix shareholders are leaning towards the belief that the company will withdraw from bidding, with prediction markets showing a 49% chance of Paramount successfully acquiring Warner Bros. compared to 37% for Netflix.
Additionally, the DOJ’s investigation into Netflix could further complicate the acquisition landscape, highlighting regulatory concerns over potential monopolistic practices. Netflix stock, which has dropped 24% since December, has seen a bounce of over 8% with the announcement of Paramount’s increased bid.
