Overview
- Warner Bros. Discovery confirmed it is evaluating Paramount Skydance’s revised proposal and continues to recommend the existing merger agreement with Netflix.
- Paramount raised its bid to $31 per share for the entire company, equating to roughly $110 billion including debt, and committed to cover the $2.8 billion breakup fee owed to Netflix.
- The offer includes a $7 billion payment if regulators block the transaction and a 25-cent-per-share quarterly ticking fee if closing extends beyond September 30.
- Netflix’s signed deal values Warner’s studios and streaming assets at $27.75 per share and contemplates spinning off cable networks into a separate Discovery Global entity before closing.
- Financing for the Paramount bid is led by Larry Ellison, and shareholders are scheduled to vote on the Netflix transaction on March 20 subject to multijurisdictional approvals.