Paramount has announced that it has submitted its latest amended offer in its ongoing hostile bid to counter Netflix's acquisition of Warner Bros. Discovery (WBD). According to the announcement, this new deal maintains the price at $30 per share but introduces a $0.25 per share "ticking fee." This fee will be applied for each quarter that the potential transaction does not close after December 31 of this year.
Additionally, the company revealed that it would cover Netflix's $2.8 billion termination fee if WBD rejects Netflix's offer. If Netflix withdraws from its agreement, it would face a penalty of $5.8 billion. Paramount also stated that it would provide "solutions" regarding financial costs and obligations that Warner Bros. has expressed concerns about, including a $1.5 billion charge related to debt refinancing.
In response, Warner Bros. said they would review the amended offer but are not changing their recommendation to shareholders to approve the Netflix deal. Recently, Netflix modified its proposal to an all-cash bid of $27.75 per share, down from the original offer that partly included stock options. Paramount is urging WBD shareholders to reject both the Netflix deal and WBD’s planned spinoff of Discovery.
Furthermore, AEW is a broadcast partner of WBD. Recent filings revealed that AEW will remain with Discovery, also known as the spinoff Global Linear Networks, while AEW’s weekly series and pay-per-views are expected to remain on HBO Max.
