Hostile bid for Warner heats up again as Paramount increases the breakup fee!

(New York, 11th) Paramount Skydance has intensified its hostile takeover bid for Warner Bros. Discovery. On Tuesday (10th), Paramount enhanced its offer by agreeing to cover up to $2.8 billion in break-up fees if Warner exits its Netflix deal, provide a $1.5 billion debt-refinancing backstop, and introduce a $0.25-per-share quarterly “ticking fee” to demonstrate confidence in clearing regulatory review.

However, the base all-cash offer remains at $30 per share. Analysts noted that the added protections are worth roughly $1.79 per share, but may still not be enough to ease concerns over high post-merger leverage. Some suggest the offer would need to exceed $32 per share to prompt serious negotiations.

Paramount emphasized its “regulatory advantage,” stating it has complied with the U.S. Department of Justice’s second request. Following the news, Warner shares rose about 2.3%, Netflix gained 1.45%, and Paramount edged up around 0.5%.