Paramount Global has changed the terms of its acquisition offer for Warner Bros. Discovery, introducing a special fee of 25 cents per share. This move is aimed at reassuring Warner Bros. shareholders and compensating them for the time it will take for lengthy antitrust reviews of the deal. This is reported by Reuters, writes UNN.
Details
The introduction of a "ticking fee" indicates Paramount's willingness to pay for time. If the process of obtaining regulatory approvals is delayed, Warner Bros. shareholders will receive $0.25 per share monthly. This strategy is designed to make the merger more attractive amid scrutiny from the U.S. Department of Justice and the Federal Trade Commission over large media deals.
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Analysts believe that Paramount is trying to demonstrate confidence in a positive regulatory decision. This is important for Warner Bros. Discovery, which is simultaneously considering various restructuring options to reduce debt and increase capitalization.
The future of the combined media giant
The merger could create a powerful player, combining the assets of HBO, CNN, CBS, and Paramount+. However, the main challenge remains the huge combined debt burden. Paramount hopes that the synergy effect and optimization of streaming platforms will allow for a quick stabilization of the new structure's finances.
Currently, the Warner Bros. Discovery board of directors is reviewing the updated terms. If an agreement is reached, this deal will be a defining one for Hollywood in 2026, radically changing the balance of power in the fight for viewers.