Source: Reuters (via feed)
Paramount has revised its all-cash offer for Warner Bros Discovery. The updated bid remains at $30 per share. However, it now includes a ticking fee of 25 cents per share. This fee applies for every quarter the deal remains unclosed beyond December 31, 2026. The terms were announced on Tuesday. The ticking fee introduces an additional cost for any delay past the specified deadline. Paramount’s move indicates an effort to incentivize a timely completion of the transaction. The offer’s structure aims to create more urgency. There was no further detail on Warner Bros Discovery’s response or the likelihood of the deal closing on schedule.
BizTrendWire Insight:
The ticking fee introduces a financial penalty for transaction delays, affecting valuation considerations for both companies.
The ticking fee introduces a financial penalty for transaction delays, affecting valuation considerations for both companies.
