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Paramount Sweetens $108 Billion Bid for Warner Bros. Discovery With Ticking Fee and Netflix Breakup-Fee Cover

WBD says it will evaluate the revised hostile offer and indicate its position within roughly ten business days.

Overview

  • Paramount kept its all-cash price at $30 per share but added a $0.25-per-share quarterly ticking fee beginning after December 31, 2026, worth about $650 million per quarter if closing is delayed.
  • The bidder pledged to cover the $2.8 billion termination fee WBD would owe Netflix if that agreement is dropped and offered up to $1.5 billion to reimburse potential WBD financing costs.
  • Paramount said the proposal is fully financed, citing $43.6 billion in equity commitments from the Ellison family and RedBird and $54 billion in debt commitments from Bank of America, Citigroup and Apollo.
  • WBD’s board continues to back its roughly $82–83 billion asset sale to Netflix and recently said more than 93% of shareholders are rejecting Paramount’s plan.
  • Paramount reported substantial compliance with the DOJ’s second request and noted German clearance, as WBD prepares a response and a special shareholder meeting expected in late March or early April.