Paramount Skydance Corp has sweetened its rejected takeover bid for Warner Bros. Discovery (WBD) without raising its offer price.
Paramount said it had added a ‘ticking fee’ in the form of extra cash for each quarter the deal failed to close and agreed to cover the breakup fee that WBD would owe if rival bidder Netflix walked away.
But Paramount stopped short of raising its offer of US$30 cash per share, valuing the target at more than $108 billion (A$153 billion), which it believes is superior to Netflix’s offer of $27.75 per share cash offer for WBD’s studio and streaming assets.
Paramount said it would add 25 cents to its offer for each quarter its transaction had not closed after 31 December, which is equivalent to $650 million.
"The additional benefits of our superior $30 per share, all-cash offer clearly underscore our strong and unwavering commitment to delivering the full value WBD shareholders deserve for their investment,” Paramount Chairman and CEO David Ellison said in a news release.
“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."
In a news release, WBD said it would review and consider the revised offer from Paramount despite the fact it has recommended the merger agreement with Netflix.
“WBD will review the amended tender offer and advise its stockholders of the Board's recommendation after the completion of that review,” the company said.
Warner Bros. Discovery shares (NASDAQ: WBD) closed 59 cents (2.17%) higher at $27.80, capitalising the company at $68.91 billion.
Paramount Skydance (NASDAQ: PSKY) shares ended 16 cents (1.50%) higher at $10.84, capitalising it at $11.62 billion.



