Paramount Skydance has enhanced its Warner Bros Discovery bid by offering shareholders extra cash for each quarter the deal fails to close after this year.
LOS ANGELES — Paramount Skydance has enhanced its Warner Bros. Discovery bid by offering shareholders additional cash for each quarter the deal fails to close after this year and by agreeing to cover the breakup fee the HBO owner would owe Netflix if it walked away.
Even though Paramount did not raise its per-share offer, the sweeteners mark the company's latest attempt to woo Warner Bros shareholders in its prolonged battle with Netflix for control of some of the world's most prized TV and film assets.Paramount has offered to pay shareholders a 25-cent per share "ticking fee" that will equal about $650 million in cash each quarter between the start of 2027 and the close of a deal with Warner Bros, the company said on Tuesday, in what appeared to be a sign of its confidence in getting a deal done relatively quickly.It did not raise its overall offer of $30 per share, or $108.4 billion including debt. But Paramount said it would fund the $2.8 billion termination fee Warner Bros would owe Netflix if the $82.7 billion deal for Warner Bros. ' studio and streaming assets fell through.Both Netflix and Paramount covet Warner Bros for its leading film and television studios, extensive content library, and major franchises such as "Game of Thrones," "Harry Potter" and DC Comics superheroes Batman and Superman.Paramount, owner of CBS, would also acquire Warner Bros' television networks, which include CNN and TNT, assets that would be spun out into a separately traded company, Discovery Global, ahead of the Netflix merger.Several analysts said the move signaled Paramount's confidence that the Netflix deal may fail to pass regulatory scrutiny and it would have an easier path to approval, but it may not be enough to sway investors waiting for a higher offer."The sweetened deal is unlikely to sway WBD away from Netflix and toward Paramount. Paramount is throwing spaghetti at the wall and hoping something sticks," said Ross Benes, senior analyst at Emarketer."Outside of raising its price, Paramount's best chance at stealing WBD is from outside regulators blocking Netflix."Warner Bros said its board would review the revised offer but has not changed its recommendation in support of the Netflix deal.Netflix did not immediately respond to a request for comment. Warner Bros shares were 2% higher, while Netflix gained 1.7% and Paramount was up 1.3% in afternoon trading.'Meaningful enhancements'Paramount also unveiled seve
Traffic Weather Sports Classifieds Cars Jobs Homes Television Radio Salt Lake Utah Local Business Entertainment Film Technology
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Netflix Exec Predicts “$6 Billion in Job Cuts” if Paramount Buys Warner Bros. Discovery'And, quite frankly, we think it's going to be even more than that,' Clete Williams says.
Read more »
Paramount sweetens hostile bid to stop Netflix-Warner Bros. dealParamount on Tuesday moved again to sweeten its hostile bid for Warner Bros. Discovery, escalating its effort to derail the company’s pending acquisition by Netflix.
Read more »
Paramount sweetens offer to Warner Bros shareholders in hostile takeover fightParamount is intensifying its efforts to take over Warner Bros.
Read more »
Paramount sweetens offer to Warner Bros shareholders in hostile takeover fightParamount is intensifying its efforts to take over Warner Bros.
Read more »
Paramount sweetens offer for Warner Bros. shareholders in hostile takeover fightParamount is intensifying its efforts to take over Warner Bros
Read more »
Paramount sweetens offer to Warner Bros shareholders in hostile takeover fightParamount is intensifying its efforts to take over Warner Bros.
Read more »