Warner Bros. Discovery (NASDAQ:WBD) shares rose 1.5% on Monday after reports circulated that Paramount Skydance is expected to present an improved takeover proposal valuing Warner Bros. Discovery at $32 per share. The potential raise would top Paramount's earlier $30 per share proposal.
People familiar with the situation said the updated proposal is likely to come in at $32 per share. David Ellison's Paramount Skydance is operating under a Monday deadline to submit its best and final offer as it seeks to outbid a competing proposal from Netflix.
Warner Bros. Discovery's board has opened a seven-day window to allow Paramount to place an enhanced bid, with Netflix's consent to the discussion period. That window is scheduled to close at 11:59 p.m. ET on Feb. 23, and representatives from both companies reportedly worked through the weekend to finalize their positions.
Paramount declined to comment on its next move, according to the report. Beyond the market reaction and the briefing around the bidding timetable, further details about any revised offer or board deliberations were not provided.
Market and corporate context
The stock reaction was modest in size but clear in direction, with Warner Bros. Discovery shares trading up approximately 1.5% on the day as investors priced in the possibility of a higher takeover proposal. The procedural step by the WBD board to open a finite period for improved bids establishes a specific timeframe for potential suitors to sharpen their offers.
Next steps and immediate timeline
- Paramount Skydance must submit its best and final offer by the end of the seven-day window.
- The discussion period concludes at 11:59 p.m. ET on Feb. 23.
- Paramount declined to provide comment when asked about its intended course of action.
At the time of reporting, no further public confirmation of a $32 bid had been issued by Paramount or Warner Bros. Discovery, and the situation remained subject to developments during the weeklong window.