Paramount has announced that it has submitted a revised offer in its aggressive bid to counter Netflix’s acquisition proposal for Warner Bros. Discovery (WBD).
The new offer maintains the $ 30-per-share price but introduces a $ 0.25-per-share “ticking fee,” which will be incurred for each quarter the potential transaction remains unclosed after December 31st of this year.
Additionally, Paramount revealed that it will cover Netflix’s $2.8 billion termination fee if WBD declines Netflix’s offer.
This is notable since Netflix would then owe a $5.8 billion penalty if it retracts its bid. Paramount also mentioned that it would provide “solutions” to help address WBD’s concerns regarding financing costs and obligations, including $1.5 billion in fees related to debt refinancing.
In response, Warner Bros. stated that it will evaluate the revised offer but is not changing its recommendation to shareholders, which supports the Netflix deal. Netflix has also updated its bid to an all-cash offer of $27.75 per share, up from the original offer that included stock options. Paramount is urging WBD shareholders to reject both the Netflix deal and WBD’s planned spinoff of Discovery.
Additionally, filings revealed that AEW, a broadcast partner of WBD, will remain with Discovery, now referred to as Global Linear Networks.
AEW’s weekly series and pay-per-view events are expected to continue streaming on HBO Max.
