What is Paramount's latest offer for Warner Bros. Discovery?

Paramount has put forth an amended offer of $30 per share, which includes a 25 cents per share ticking fee.

What is the significance of the ticking fee in Paramount's offer?

The ticking fee is 25 cents per share, payable quarterly if the transaction doesn't close by December 31, 2026, potentially amounting to around $650 million each quarter.

What action has the WBD board taken regarding Paramount's offer?

The WBD board is carefully reviewing the offer and has advised shareholders to take no immediate action.

Home / Business and Economy / WBD Board Reviews Paramount's Revised $30 Per Share Offer

WBD Board Reviews Paramount's Revised $30 Per Share Offer

10 Feb

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Summary

Paramount offers $30 per share with a ticking fee.
A $2.8 billion termination fee is payable to Netflix.
WBD board advises no immediate action on the offer.

WBD Board Reviews Paramount's Revised $30 Per Share Offer

Warner Bros. Discovery's board is set to "carefully review and consider" a new, amended offer from Paramount. This latest proposal values Paramount at $30 per share, incorporating a 25 cents per share ticking fee. This fee would be paid quarterly to shareholders if the transaction does not close by December 31, 2026, potentially equating to approximately $650 million each quarter.

Paramount's offer also includes a significant $2.8 billion termination fee payable to Netflix. Furthermore, it commits to reimbursing WBD shareholders for a $1.5 billion financing cost related to a debt exchange. The company is also offering flexibility regarding bridge loans and permanent financing. WBD's board has not changed its recommendation concerning its existing deal with Netflix and advises shareholders to await further guidance.

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