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It appears the fight for Warner Bros. Discovery just took a turn.
After months of failed attempts to woo the company, David Ellison’s Paramount Skydance has finally made a strong enough offer that the Warner Bros. Discovery board has announced (via Bloomberg and Deadline) that it could become a ‘Company Superior Proposal’.
The new offer has seen Paramount Skydance proposing a purchase price of $31 a share in cash plus a daily ticking fee of $0.25 per quarter beginning after September 30th.
There’s also a $7 billion regulatory termination fee payable by Paramount if regulatory roadblocks stop the transaction, and payment by Paramount of the existing $2.8 billion termination fee between Warner Bros. Discovery and Netflix. There are also other obligations and clauses beneficial for Warner Bros. Discovery.
Warner Bros. Discovery has made it clear they’ve not yet determined whether the revised proposal is ‘superior’ to the Netflix merger, but today’s statement means they can engage further to determine if they can come to an agreement.
If the board determines it is a superior proposal, then Netflix has four business days to negotiate propose any revisions to its own transaction. At present, the board “continues to recommend in favor of the Netflix transaction and is not withdrawing or modifying its recommendation.”
The post WBD Warming To Paramount’s New Offer appeared first on Dark Horizons.
