Warner is now reconsidering Paramount's offer? 8th attempt!

A new Bloomberg report claims that Warner Bros. Discovery Inc. is considering reopening sale talks with Paramount Skydance Corp., following the group's latest amended offer in its hostile takeover bid. According to the trade press, members of Warner's board are wondering: Can Paramount offer a path to a more advantageous deal? Such a move could reignite a second bidding war with Netflix. Sources cited indicate that the board has not yet decided on its response and may stick to the current agreement with Netflix. An obvious question remains: Is this opening merely a negotiating tactic to pressure Netflix into raising its offer? Paramount and Netflix are still in the running, but nothing is decided yet. Both Paramount and Netflix have already indicated they would be willing to increase their offers to secure a deal for Warner, even though this has caused a backlash: Netflix stock has fallen by more than 40% since June. Paramount submitted its amended terms last week. These include assuming the $2.8 billion in penalties owed to Netflix if Warner Bros. terminates its agreement, as well as guaranteeing refinancing of Warner Bros.' debt and compensation for shareholders if the transaction is not finalized by the end of the year. To re-engage with Paramount, Warner Bros. would first have to inform Netflix, then try to get Paramount to offer more than $30 per share. Then, if Warner deems Paramount's new offer superior, Netflix would have the right to match it. In this arena, bluffs and bidding wars are waged with billions of dollars, and every signal can serve as leverage in negotiations. Suffice it to say that, for the moment, nothing seems to be decided yet.