Warner Bros. Discovery has confirmed receipt of a revised takeover offer from Paramount Skydance, which includes new financial commitments. The company stated that its board will review the offer in accordance with its fiduciary duties and in consultation with independent advisors.
The offer, valued at $30 per share, was previously made by David Ellison's Paramount Skydance to acquire all outstanding shares of WBD common stock. In an effort to sweeten the deal, Paramount has added new financial commitments, including a promise to pay Warner Bros. Discovery shareholders $25 cents per share for every quarter beyond December 31, 2026.
The move comes as Netflix and Warner Bros. Discovery are nearing completion of their own agreement, valued at $83 billion. However, the terms of that deal include the spin-off of Discovery Global, which houses WBD's linear TV assets, from Warner Bros. Discovery.
As part of its review process, Warner Bros. Discovery's board will not modify its recommendation regarding the Netflix merger agreement. Instead, it will advise shareholders on the board's recommendation after completing its review of the Paramount offer, with an answer due within 10 business days. The company has urged shareholders not to take any action related to the amended offer at this time.
The revised offer includes provisions that address some of the concerns raised by WBD, such as the $2.8 billion termination fee owed to Netflix. If accepted, Paramount's offer could potentially provide more certainty for WBD shareholders than the original deal with Netflix.
The offer, valued at $30 per share, was previously made by David Ellison's Paramount Skydance to acquire all outstanding shares of WBD common stock. In an effort to sweeten the deal, Paramount has added new financial commitments, including a promise to pay Warner Bros. Discovery shareholders $25 cents per share for every quarter beyond December 31, 2026.
The move comes as Netflix and Warner Bros. Discovery are nearing completion of their own agreement, valued at $83 billion. However, the terms of that deal include the spin-off of Discovery Global, which houses WBD's linear TV assets, from Warner Bros. Discovery.
As part of its review process, Warner Bros. Discovery's board will not modify its recommendation regarding the Netflix merger agreement. Instead, it will advise shareholders on the board's recommendation after completing its review of the Paramount offer, with an answer due within 10 business days. The company has urged shareholders not to take any action related to the amended offer at this time.
The revised offer includes provisions that address some of the concerns raised by WBD, such as the $2.8 billion termination fee owed to Netflix. If accepted, Paramount's offer could potentially provide more certainty for WBD shareholders than the original deal with Netflix.
... on one hand they got a solid offer from paramount skydance that's pretty enticing, but then again the netflix deal is still on the table & if they pass on that one... idk... discovery global might be spun off & that could impact their overall value 
. i'm not sure what to think about the $25 cents per share thing tho, it seems like paramount's just trying to sweeten the deal 
. either way, i hope wbd makes a decision soon 'cause this uncertainty is killing me 
I mean, I get that they gotta do what's best for shareholders, but come on. And what's with this promise to pay out extra cash if we don't take the deal? That just seems like a big ol' giveaway 
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. So, fingers crossed that WBD's board gets it right this time... or am I just being too optimistic 
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... they're basically handing wbd shareholders a bunch of money to sweeten the deal 
. it's all about the money, folks 
and it's got me thinking about what would happen to wbd if they actually go through with it... like, imagine having 30 bucks per share and getting an extra 25 cents every quarter after december 31st next year 
. With this revised offer from Paramount Skydance, it's clear they're trying to outdo Netflix on value 
. Meanwhile, Netflix is still in the mix with that $83 billion deal... but there's a catch – Discovery Global has to go its separate way 
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. The board's not backing down from Netflix just yet, but this Paramount offer is definitely making things interesting 
. On the other hand, I worry that this takeover could change the direction of Warner Bros. Discovery in ways we can't even imagine right now 
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. And with the spin-off of Discovery Global, I'm not sure what's going to happen to that part of the business 
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. I just hope they take their time and do some careful analysis before making a decision 
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. I mean, $83 billion is a lot of money, but this new offer is looking pretty enticing too...$30 per share is a nice chunk of change 
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. And addressing that pesky $2.8 billion termination fee is a big win for WBD 
. It'll be interesting to see how this all plays out in the next 10 business days...fingers crossed it works out smoothly 
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