- Earlier in the day, Paramount Skydance enhanced its $30 per share all-cash bid for Warner Bros. Discovery Inc.
- Paramount, as part of its enhanced bid, said that it will fund a $2.8 billion termination fee payable to Netflix.
- As per Paramount’s new offer, WBD’s Series A common stock reflects a total equity value of $78 billion and an enterprise value of $108 billion.
Warner Bros. Discovery (WBD) on Tuesday confirmed that it has received an amended, unsolicited tender offer from Paramount Skydance Corporation (PSKY) to acquire all of the outstanding shares of WBD common stock.
Earlier in the day Paramount Skydance Corp. (PSKY) on Monday enhanced its $30 per share all-cash bid for Warner Bros. Discovery Inc.
WBD said that it will review the amended tender offer and advise its stockholders of the Board's recommendation after the completion of that review.
The company said that its Board is not modifying its recommendation with respect to the Netflix Merger Agreement.
PSKY’s Amended Offer
Paramount enhanced its offer with a $0.25 per share and called it a "ticking fee," which is payable to WBD shareholders for each quarter its transaction has not closed beyond December 31, 2026. Paramount stated that this is equivalent to approximately $650 million cash value each quarter.
Paramount as part of its enhanced bid also said that it will fund a $2.8 billion termination fee payable to Netflix and offer solutions to WBD's debt financing costs and obligations.
Valuation Difference
As per Paramount, its new 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.
Netflix's offer, on the other hand, valued WBD at an equity value of $72 billion and an enterprise value of $82.7 billion.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around WBD stocks stayed within the ‘neutral’ territory over the past 24 hours. Meanwhile, sentiment around PSKY trended in ‘bullish’ territory amid ‘extremely high’ message levels.
Retail sentiment around NFLX trended in ‘bearish’ territory amid ‘low’ message volumes.
WBD shares have gained 172% over the past 12 months, while shares of PSKY and NFLX have dropped 0.8% and 19%, respectively.
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