Paramount Boosts Warner Bros Takeover Bid with $650M Quarterly Payments
Paramount Skydance has upped the ante in its hostile takeover bid for Warner Bros. Discovery, introducing a 25-cent per share quarterly “ticking fee” that would equate to roughly $650 million in cash for each quarter the deal remains unclosed post-December 31, 2026. This strategic move underscores Paramount’s confidence in obtaining quicker regulatory approval compared to its competitor, Netflix.
Despite holding firm on its $30 per share all-cash offer, which values Warner Bros. Discovery at a staggering $108.4 billion inclusive of debt, Paramount has also pledged to shoulder the $2.8 billion breakup fee that Warner would be obliged to pay Netflix if their existing agreement is terminated. Furthermore, Paramount has committed to eradicating up to $1.5 billion in potential financing costs tied to Warner’s debt structure.
The enhanced offer emerges as Paramount grapples to secure shareholder backing for its bid. As of February 10, a mere 42.3 million Warner shares had been tendered, a steep decline from the 168.5 million on January 21. With approximately 2.48 billion shares outstanding for Warner Bros. Discovery, Paramount would require more than 50 percent to seize control.
Warner’s board persists in recommending shareholders accept Netflix’s rival $82.7 billion bid for the company’s studio and streaming assets, contending it offers superior value. Both deals are subject to significant regulatory scrutiny from the U.S. Department of Justice and international competition authorities. Paramount has extended its tender offer deadline to March 2, 2026.
Source: CNBC