Paramount sweetens its offer for Warner Bros. Discovery

Core Viewpoint - Paramount Skydance has revised its offer to acquire Warner Bros. Discovery, introducing a $2.8 billion break fee for Netflix and a quarterly payment increase for shareholders if the deal does not close by January 1, 2027, although it remains uncertain if this will influence Warner's board, which favors a competing bid from Netflix [2][6]. Group 1: Offer Details - The updated offer includes an all-cash price of $30 per share, a termination payment, and a "ticking fee" of 25 cents per share, amounting to approximately $650 million in cash value each quarter [3]. - Paramount's proposal also aims to eliminate Warner's $1.5 billion financing cost related to its debt exchange offer and provide flexibility for refinancing a $15 billion bridge loan [4]. Group 2: Financing and Commitments - The revised offer is fully financed with $43.6 billion in equity commitments from the Ellison family and RedBird Capital Partners, alongside $54 billion in debt commitments from Apollo, Bank of America, and Citigroup [4]. - A personal guarantee of $43.3 billion from Larry Ellison, co-founder of Oracle and father of David Ellison, is included in the offer [4]. Group 3: Company Statements and Reactions - David Ellison emphasized the enhancements to the bid, highlighting the commitment to providing shareholders with value certainty, a clear regulatory path, and protection against market volatility [5]. - Warner Bros. Discovery acknowledged receipt of the new offer and stated it would carefully review it, but the board remains committed to its agreement with Netflix and advised shareholders not to act on Paramount's tender offer at this time [6].