Paramount Presents New Offer In Hostile Bid To Acquire Warner Bros. Discovery

Paramount has presented its latest offer in its hostile bid to try and counter Netflix’s deal for Warner Bros. Discovery. Paramount announced on Tuesday that it has tendered an amended offer for the studio. The new deal does not change the price of $30 a share, but adds a $0.25 per share “ticking fee.” The fee would be paid for each quarter that its potential transaction doesn’t close after December 31st of this year.

The company also said that it will pay Netflix’s $2.8 billion termination fee that would come due if WBD rejects Netflix’s deal. Netflix would be on the hook for a $5.8 billion deal if it pulls out of the deal.

Paramount also noted that it will offer “solutions” around financing costs and obligations that Warner Bros. has expressed issues with, including a $1.5 billion tag in fees related to debt refinancing.

Warner Bros. said in response that it will review the amended offer but is not currently changing its recommendation to shareholders that they approve the Netflix deal. Netflix recently modified its offer into an all-cash bid at $27.75 per share, as opposed to the original deal for the same amount but which was paid in part by stock options.

Paramount is asking WBD shareholders to reject the Netflix deal as well as WBD’s planned spinoff of Discovery.

AEW is of course a broadcast partner of WBD. It was revealed in filings that AEW would stay with Discovery, aka the spinoff Global Linear Networks, while AEW’s weekly series and PPVs are expected to stay on HBO Max.