Paramount Skydance Corporation has amended its $30 per share offer to acquire Warner Bros. Discovery, adding a ticking fee to WBD shareholders of $0.25 per share – equivalent to approximately $650 million cash value each quarter – for every quarter the transaction is not closed beyond December 31, 2026.
Paramount will also fund the payment of the $2.8 billion termination fee due to Netflix concurrent with the termination of the Netflix agreement, and will eliminate WBD’s potential $1.5 billion financing cost associated with its debt exchange offer by fully backstopping an exchange offer that relieves WBD of its contractual bondholder obligation.
Paramount will fully reimburse WBD’s shareholders for the $1.5 billion fee in the event that the exchange is not successful, and the Paramount transaction does not close.
Paramount’s amended offer is fully financed by an increased $43.6 billion of equity commitments from the Ellison Family and RedBird Capital Partners and $54.0 billion of debt commitments from Bank of America, Citigroup and Apollo.
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