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Tencent eyes Warner Bros. Discovery deal after Netflix exits
9 Mar
Summary
- Tencent may invest hundreds of millions in the Warner Bros. Discovery deal.
- Paramount plans to acquire 100% of WBD's shares for $110 billion.
- Deal expected to close by Q3 2026, pending necessary approvals.
Tencent is now exploring an investment of several hundred million dollars in the $110 billion Warner Bros. Discovery (WBD) acquisition by Paramount. This follows Tencent's previous withdrawal of a $1 billion commitment due to U.S. national security concerns. The company would be acting solely as a passive financial investor.
Paramount's acquisition of WBD involves paying $31 per share in cash. The deal is backed by $47 billion in equity from the Ellison Family and RedBird Capital Partners, potentially including other partners.
Financing also includes $54 billion in debt commitments from major banks and $3.5 billion from an existing revolving credit facility. Existing Paramount stockholders can participate in a rights offering.
The companies are targeting a shareholder vote in early spring, with an expected deal closure by September 30, 2026. A quarterly "ticking fee" and a $7 billion termination fee are stipulated if regulatory issues prevent closure.
