How has Skydance enhanced its bid for Warner Bros. Discovery?

Skydance has offered additional cash for each quarter the deal fails to close beyond this year and agreed to cover the breakup fee Warner Bros. Discovery would owe Netflix.

Do analysts believe Skydance's revised offer will sway Warner Bros. Discovery shareholders?

Analysts are divided, with some suggesting the offer is sweeter but many believing a significant increase in the per-share price is needed to sway shareholders away from the Netflix bid.

What are the concerns regarding regulatory approval for the Warner Bros. Discovery bids?

Both the Netflix and Skydance bids are expected to face lengthy and contentious regulatory reviews in the U.S. and internationally, with no guarantee of a successful outcome.

Home / Business and Economy / Warner Bros Deal Race: Skydance Adds Cash, Covers Fees

Warner Bros Deal Race: Skydance Adds Cash, Covers Fees

10 Feb

•

Summary

Skydance enhanced its Warner Bros. Discovery bid with extra cash and fee coverage.
Analysts question if the revised offer is enough to sway shareholders from Netflix.
Both Netflix and Skydance bids face potential lengthy regulatory reviews.

Warner Bros Deal Race: Skydance Adds Cash, Covers Fees

Skydance has improved its offer for Warner Bros. Discovery, introducing a provision for extra cash payments for each quarter the deal's closure extends beyond this year. Additionally, Skydance has agreed to cover the breakup fee Warner Bros. Discovery would owe Netflix if the latter were to withdraw from negotiations.

Market experts and analysts offer varied perspectives on the revised proposal. Some believe the adjusted terms make the offer more appealing, specifically addressing shareholder concerns about the timeline for regulatory approvals and management's demand for fee coverage. However, the core per-share offer price remains unchanged.

Despite the enhancements, skepticism persists regarding the offer's ability to outcompete Netflix. Several analysts suggest that a significant increase in the per-share bid price is crucial for swaying Warner Bros. Discovery shareholders. Both the Netflix and Skydance proposals are anticipated to undergo extensive and potentially contentious regulatory scrutiny in both the U.S. and internationally, with no certainty of approval.