Paramount Adds $650M Cash Sweetener to $31.4B Warner Bros. Discovery Bid
Paramount increased the cash portion of its all-stock bid for Warner Bros. Discovery by $650 million, raising the total cash component to $2.35 billion. The adjustment boosts the offer to roughly $29 per share, valuing WBD at an enterprise value of about $31.4 billion.
1. Offer Revision and Sweetener
Paramount amended its proposal by injecting an additional $650 million into the cash portion of its all-stock takeover bid for Warner Bros. Discovery. This boost raises the cash component to $2.35 billion, aimed at making the offer more attractive to WBD shareholders.
2. Revised Valuation
With the sweetener, the combined value per share climbs to approximately $29, reflecting an enterprise valuation for WBD of about $31.4 billion. The structure remains 0.331 Paramount shares plus the enhanced cash consideration for each WBD share.
3. Financial Impact on Paramount
The increased cash commitment will draw on Paramount’s liquidity reserves and may require additional debt or asset sales to fund the $2.35 billion component. Analysts anticipate modest dilution for Paramount shareholders due to the all-stock nature of the bid.
4. Shareholder Reaction and Next Steps
Warner Bros. Discovery’s board will review the revised terms and assess shareholder support before deciding on a formal response. Both companies are expected to engage advisers and outline a clear timeline for definitive deal documentation and potential regulatory filings.