Paramount sweetens its offer for Warner Bros. Discovery

Paramount Skydance has sweetened its bid for Warner Bros. Discovery, adding a $2.8-billion “break fee” for Netflix and a outgo to shareholders acceptable to summation for each 4th aft Jan. 1, 2027, that the transaction does not close.

However, it’s not wide the latest determination volition bash overmuch to sway Warner Bros. Discovery’s board, which has endorsed a rival bid from Netflix.

The David Ellison-led institution sent announcement Tuesday of its revised connection to the Warner Bros. Discovery board, adding that it was unfastened to further negotiation.

“While we person tried to beryllium arsenic constructive arsenic imaginable successful formulating these solutions, respective of these items would payment from collaborative treatment to finalize,” the missive states. “If granted a abbreviated model of engagement, we volition enactment with you to refine these solutions to guarantee they code immoderate and each of your concerns.”

Paramount’s all-cash connection inactive stands astatine $30 a share. In summation to the termination outgo and alleged “ticking fee” for shareholders of 25 cents per stock — which the institution said would full astir $650 cardinal successful currency worth each 4th — Paramount besides said it would “eliminate” Warner’s $1.5-billion financing outgo associated with its indebtedness speech offer.

The institution besides said it would “provide flexibility” for Warner to refinance its existing $15-billion span loan.

Ellison said the caller additions to Paramount’s bid “underscore our beardown and unwavering committedness to delivering the afloat worth [Warner Bros. Discovery] shareholders merit for their investment.”

“We are making meaningful enhancements — backing this connection with billions of dollars, providing shareholders with certainty successful value, a wide regulatory path, and extortion against marketplace volatility,” helium said successful a statement.

Warner confirmed it received Paramount’s caller connection and said successful a connection Tuesday that it would “carefully reappraisal and consider” the revised bid.

However, the Warner committee is “not modifying its recommendation” connected its statement to merchantability its studios, HBO and HBO Max, to Netflix and advised shareholders not to instrumentality “any enactment astatine this time” connected Paramount’s tender connection to shareholders.