Is Paramount Ready to Raise Its Bid for Warner Bros. Discovery?

"WBD announced today that a "senior representative" from Paramount told a WBD board member that Paramount "would agree to pay $31 per share and that the offer was not PSKY's 'best and final' proposal." Paramount's bid adjustments last week included a promise to cover the $2.8 billion breakup fee WBD would owe to Netflix should it renege on their $83 billion deal, plus a "ticking fee" of $650 million payable to WBD shareholders for every quarter that Paramount's prospective deal did not close."

"But for weeks, industry observers have been waiting for Paramount to sweeten the deal by raising its bid by $2 or $3 per share. The big question is whether the company is ready to do just that. Netflix granted seven days, ending on February 23, to the WBD board to reopen talks with Paramount, as allowed under a "limited waiver" in WBD's prior agreement with the streaming giant."

Warner Bros. Discovery reopened talks with Paramount Skydance after Paramount adjusted its takeover proposal. Paramount pursued a hostile takeover after losing the initial bidding war to Netflix. Netflix's winning bid was $27.75 per share for WBD's streaming and studios business, while Paramount offered $30 per share for all of WBD. A Paramount representative said Paramount would pay $31 per share and that the offer was not PSKY's 'best and final' proposal. Paramount pledged to cover a $2.8 billion breakup fee payable to Netflix and offered a $650 million quarterly 'ticking fee.' Netflix granted a seven-day limited waiver ending February 23 to reopen talks. WBD's board still unanimously recommends the Netflix sale and set a March 20 special shareholder meeting.

Read at Vulture