"The biggest risk to the Paramount-WBD deal now is regulatory. David Ellison and his father, Larry, the billionaire Oracle cofounder helping backstop the $110 billion deal, certainly aren't backing out. And neither are WBD shareholders, since they'd lose a lot of value if they didn't take this deal with Netflix out of the picture."
"Paramount has agreed to pay a so-called 'ticking fee' of $0.25 per share, or about $650 million, every quarter that its deal doesn't get regulatory approval, starting on September 30."
"WBD's Zaslav told staffers during a town hall last Friday that the Paramount-WBD deal approval process could last six to 18 months."
Paramount and CEO David Ellison successfully outbid Netflix for Warner Bros. Discovery's studio, streaming assets, and cable networks after 10 offers. Netflix withdrew from the bidding process. The $110 billion acquisition, backed by billionaire Larry Ellison, faces significant regulatory hurdles in the US and internationally that could delay closing by 6-18 months. Paramount agreed to pay a quarterly ticking fee of $0.25 per share (approximately $650 million) for each quarter the deal remains unapproved, beginning September 30. Regulatory approval represents the primary risk to deal completion, as neither Paramount nor WBD shareholders are expected to withdraw.
#media-merger #regulatory-approval #paramount-wbd-deal #streaming-industry #entertainment-consolidation
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