Paramount Skydance Enhances $30 Per Share Bid For Warner Bros Discovery

• Paramount stated that its offer of $30 in cash for each outstanding share of WBD’s Series A common stock reflects a total equity value of $78 billion and an enterprise value of $108 billion.
• This includes the net debt and noncontrolling interest components as well.
• In contrast, Netflix’s offer valued WBD at an equity value of $72 billion and an enterprise value of $82.7 billion, but excluded the spinoff company.

Paramount Skydance Corp. (PSKY) on Tuesday enhanced its $30 per share all-cash bid for Warner Bros. Discovery Inc. (WBD).

The company added a “ticking fee”, presenting an incremental cash consideration to WBD shareholders of $0.25 per share. Paramount stated that this is equivalent to approximately $650 million cash value each quarter, for every quarter the transaction is not closed beyond Dec. 31, 2026.

Paramount Skydance shares rose more than 1% in Tuesday’s opening trade, while Warner Bros. Discovery shares gained nearly 3%. Retail sentiment on Stocktwits around PSKY trended in the ‘bullish’ territory, while users felt ‘bearish’ about WBD.

Netflix shares were up 3% at the time of writing, with retail sentiment trending in the ‘bearish’ territory on Stocktwits.

Warner Bros Discovery’s Valuation As Per The New Offer

Paramount stated that its offer of $30 in cash for each outstanding share of WBD’s Series A common stock reflects a total equity value of $78 billion and an enterprise value of $108 billion. This includes the net debt and noncontrolling interest components as well.

In contrast, Netflix’s offer valued WBD at an equity value of $72 billion and an enterprise value of $82.7 billion, but excluded the spinoff company.

Commitments From Ellison Family And RedBird Capital

Paramount also detailed commitments from the Ellison family and RedBird Capital Partners, stating that they will contribute $43.6 billion in cash. The company will source $54 billion through new transaction debt and WBD bridge loan refinancing, with $3.5 billion from Paramount.

It also stated that WBD will be given flexibility regarding the refinancing of its $15 billion bridge loan.

Funding Termination Fee

Paramount also stated that it will fund the $2.8 billion termination fee that WBD will owe Netflix if it decides not to proceed with the deal and instead accepts PSKY’s offer.

The company also stated that the Netflix deal requires WBD shareholders to approve a transaction where they do not know how much actual cash consideration they will receive. Paramount said this is because the cash consideration in the Netflix deal is predicated on Discovery Global's financial condition at the time of separation and its resulting debt capacity.

PSKY stock is down 19% year-to-date, WBD stock is down 4%, while NFLX stock has declined 13%.

Also See: This Biotech Stock Nearly Doubled In Value Today Morning – What’s Driving Investor Optimism?

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