"On Tuesday, the Skydance-owned company said it would pay Warner shareholders an added "ticking fee" if its deal doesn't go through by the end of the year - amounting to 25 cents per share, or a total of $650 million, for every quarter after Dec. 31. Paramount also pledged to fund Warner's proposed $2.8 billion breakup payout to Netflix under its studio and streaming merger agreement."
"But it has a long way to go in terms of getting shareholder support - which, according to recent company disclosures, has appeared to decline over the last month. As of Monday, Paramount said that more than 42.3 million Warner shares had been "validly tendered and not withdrawn" from its bid, down from over 168.5 million Warner shares on Jan. 21."
Paramount is sweetening its hostile takeover bid for Warner Bros. Discovery by adding a ticking fee of 25 cents per share, equivalent to $650 million per quarter after Dec. 31, and pledging to fund Warner's proposed $2.8 billion breakup payout to Netflix. The cash offer remains $30 per share and the tender deadline has been extended to March 2. The proposed acquisition values Warner at $77.9 billion, with a total enterprise value of $108 billion including debt, and would include networks such as CNN and Discovery. Validly tendered shares have declined sharply, leaving Paramount far short of the majority needed to gain control.
Read at Fast Company
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