Warner Bros Discovery Weighs Paramount’s $30 Bid with $0.25 Quarterly Fee
Warner Bros. board is weighing reopening sale talks with Paramount Skydance after a revised $30 per share takeover proposal valuing the company at $108.4 billion including debt and adding a $0.25 quarterly fee from 2027. Paramount will cover Warner’s $2.8 billion breakup fee, potentially sparking a bidding war with Netflix’s $27.75 offer.
1. Board Weighs Reopening Paramount Talks
Warner Bros. Discovery’s board is evaluating reopening sale discussions with Paramount Skydance following a revised takeover proposal, with no final decision made and the existing Netflix transaction still in place.
2. Details of Paramount’s Revised Offer
Paramount’s bid remains $30 per share, valuing the company at about $108.4 billion including debt, adds a $0.25 per share quarterly ticking fee beginning in 2027 and commits to covering the $2.8 billion breakup fee owed to Netflix.
3. Existing Netflix Transaction
Under the current agreement, Netflix would acquire Warner’s studio and streaming assets for $27.75 per share, excluding a planned spin-off of global networks.
4. Potential Bidding War and Investor Pressure
Activist investors Pentwater Capital Management and Ancora Holdings Group are urging the board to reconsider Paramount’s terms; reopening negotiations could trigger a competitive auction and face regulatory scrutiny.