Paramount Skydance Soars 20.8% on $110B Warner Bros Acquisition
Paramount Skydance shares jumped 20.84% to $13.51 after Netflix withdrew from the bidding war. The company signed a definitive agreement to acquire Warner Bros for $110 billion, paying $31 per share with a $0.25 quarterly ticking fee if the deal extends past September 30.
1. Stock Reaction
Paramount Skydance shares surged 20.84% to close at $13.51 after Netflix exited the bidding for Warner Bros. This jump marked one of the largest daily gains for PSKY since its listing and reflected investor confidence in the confirmed acquisition deal.
2. Acquisition Terms
The definitive agreement values Warner Bros at $110 billion, with Paramount Skydance offering $31 per share. This bid topped Netflix’s earlier $27.75 offer, securing board approvals from both companies and positioning PSKY as the winning suitor.
3. Netflix Withdrawal
Netflix announced it would not raise its bid further, citing a lack of financial attractiveness at higher prices. The streaming giant emphasized that its pursuit of Warner Bros was a strategic option rather than a necessity.
4. Closing Timeline and Ticking Fee
The transaction is slated to close in the third quarter, subject to customary conditions. If the deal remains unclosed by September 30, Paramount Skydance will pay Warner Bros shareholders a $0.25 per share fee each quarter until completion.