Hollywood
Warner Bros considers reviving sale talks with Paramount, Bloomberg reports
Board debates rival paths as ticking fees raise stakes for shareholders
NEW YORK: Warner Bros Discovery is weighing whether to reopen sale talks with Paramount Skydance, after the rival suitor sweetened its hostile bid, Bloomberg News reported, citing people familiar with the matter.
Board members are debating whether Paramount could deliver a superior outcome for shareholders, though no decision has been taken and the company may yet stick with its existing deal with Netflix, the report said.
Paramount last week enhanced its proposal by offering a 25-cent-per-share quarterly “ticking fee” in cash from 2027 until the deal closes, worth roughly $650 million, and agreed to shoulder Warner Bros’ $2.8 billion breakup fee should it walk away from Netflix. The bidder, however, did not lift its $30-per-share offer, valuing the transaction at $108.4 billion including debt.
Both Netflix and Paramount are chasing Warner Bros for its film and television studios, vast content library and franchises spanning Game of Thrones, Harry Potter and DC Comics’ Batman and Superman.
Pressure on the board has intensified after activist investor Ancora Holdings, which holds a near-$200 million stake, said it would oppose the Netflix deal, arguing directors failed to engage seriously with Paramount’s rival proposal, which includes cable assets such as CNN and TNT.
Hollywood
WBD sets April 23 vote on $110bn Paramount Skydance merger
Investor approval key step, but regulators loom over mega media deal
NEW YORK: Warner Bros. Discovery has set April 23 as the date for shareholders to vote on its proposed $110 billion merger with Paramount Skydance, marking a crucial step in one of the biggest media deals in recent years.
The all-cash transaction offers WBD shareholders $31 per share, a hefty 147 per cent premium to its unaffected stock price, signalling strong intent to push the deal across the finish line. The company’s board has unanimously backed the merger and is urging investors to vote in favour.
Even if shareholders give the green light, the deal is far from done. Regulators in the United States and Europe are expected to scrutinise the merger closely, weighing concerns around competition and potential price impacts for consumers.
To keep investors on side, WBD has built in a safety net. If the deal is not completed by September 30, shareholders will receive a quarterly “ticking fee” of $0.25 per share until closure.
The proposed merger would significantly reshape the media landscape, combining the assets of Warner Bros. Discovery with those linked to Paramount Global and Skydance Media. It would also cement the growing influence of David Ellison, who has been steering Skydance’s aggressive expansion strategy.
“The WBD Board has been guided by the singular principle of securing a transaction that maximises the value of our iconic assets and delivers as much certainty as possible to our shareholders,” said Warner Bros. Discovery board chair Samuel A. Di Piazza Jr.. “This historic transaction will expand consumer choice and create new opportunities for creative talent.”
Warner Bros. Discovery chief executive officer David Zaslav added that the company is working closely with its counterpart to close the deal and unlock value for stakeholders.
With investor backing likely but regulatory hurdles ahead, the proposed merger is shaping up to be a defining moment for the global entertainment industry, where scale, content and competition are increasingly intertwined.
