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The board of Warner Bros. Discovery has reportedly said it will review the latest amended tender offer from Paramount Skydance in the latter’s attempted hostile takeover.
Once reviewed, they will make a decision whether to officially accept or reject the rival bid to its current Netflix sale agreement.
The new offer, extended to a March 2nd expiry date, sees David Ellison’s Paramount Skydance adding “incremental cash consideration” to Warner Bros. Discovery shareholders of 25c a share (ie. $650 million cash value) each quarter for every quarter the proposed Paramount acquisition is not closed beyond December 31st 2026.
In addition, Paramount says if shareholders accept the offer, it will pay a $2.8 billion termination fee due to Netflix concurrent with the termination of the Netflix agreement, as well as a potential $1.5 billion financing cost associated with its debt exchange offer.
In a statement, Ellison says: “We are making meaningful enhancements — backing this offer with billions of dollars, providing shareholders with certainty in value, a clear regulatory path, and protection against market volatility.”
Warner Bros. Discovery is expected to hold a shareholder meeting in late March/early April in which the Netflix deal will come to a vote. To date, the board at Warner Bros. Discovery has rejected Ellison’s attempts a whopping eight times.
Source: Variety
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