Paramount to Cover $2.8 B Netflix Termination Fee and Add Ticking Charge
Paramount Skydance sweetened its hostile Warner Bros offer by agreeing to cover Warner’s $2.8 billion Netflix termination fee and adding a 25¢ quarterly ticking fee to its proposal. The enhanced bid ensures Netflix’s $2.8 billion payment remains protected and highlights catalysts including Warner’s Q4 results on Feb. 26 and a March 2 tender deadline.
1. Revised Bid Mechanics
Paramount Skydance enhanced its hostile proposal by introducing a ticking fee of 25¢ per quarter, increasing the offer price over time if regulatory approval is delayed, to pressure Warner Bros to finalize swiftly.
2. Netflix Termination Fee Assurance
Under the updated terms, Paramount will pay Warner Bros’ $2.8 billion Netflix termination fee, safeguarding Netflix’s cash receipt obligation if Warner cancels its deal with Netflix in favor of Paramount.
3. Deal Timeline and Catalysts
Key upcoming events include Warner Bros’ Q4 earnings release on Feb. 26, the tender offer deadline on March 2 and an April shareholder vote, all of which will influence the bid’s success and Netflix’s fee realization.