Paramount proposes to pay Warner shareholders an extra amount each quarter that their transaction doesn’t close
Previously on the Paramount-Warner drama…
Weeks ago, after Warner’s repeated rejections of Paramount Skydance’s bids to win the studio, Paramount planned to “nominate directors for election at the Warner Bros. Discovery 2026 annual meeting to solicit against the approval of the Netflix transaction.” They have additionally filed a suit against Warners “to ask the court to simply direct WBD to provide disclosure about how it valued the Global Networks stub equity, how it valued the overall Netflix transaction, how the purchase price reduction for debt works in the Netflix transaction, or even what the basis is for its ‘risk adjustment’ of our $30 per share all-cash offer.”
Paramount sweetens their offer
Deadline is now reporting that Paramount is sweetening their deal even further. While they aren’t increasing their proposed $30 a share cash bid, they are adding a new $0.25 a share so-called “ticking fee” payable to WBD shareholders for each quarter its transaction has not closed beyond December 31, 2026. The studio is selling that their new offer is equivalent to approximately $650 million cash value each quarter and it would underscore “Paramount’s confidence in the speed and certainty of regulatory approval for its transaction.” Additionally, Paramount Skydance has agreed to fund a $2.8 billion termination fee to be paid to Netflix and said it is offering some solutions for Warner Bros.’ debt financing costs and obligations.
Netflix has entered the chat
Paramount’s competitor, Netflix (who Warner Bros. has already shaken hands with on a deal), had prepared to offer an all-cash payment weeks ago to close the Warners transaction for certain. Netflix has additionally been announcing their business plans with their new acquisition as the movie-going world awaits with baited breath on what they plan to do with theatrical releases. Netflix has stated that they will continue with a 45-day window.
Ted Sarandos had also encouraged customers to cancel either their Netflix or HBO Max subscription if both become too overwhelming. He says he aims to continue the top-notch quality of Netflix, but the merger isn’t designed to hurt the subscribers.
Ever since the deal was made between Netflix and Warner Bros., Paramount has continued to bid on the studio in a more aggressive fashion, claiming that Netflix is not giving the shareholders a superior deal.
The post Paramount proposes to pay Warner shareholders an extra amount each quarter that their transaction doesn’t close appeared first on JoBlo.