Ticking fees and breakup cover sing a game-changing song!

As we know, the bid war between Netflix and Paramount is keeping people from everywhere hooked. WBD ignored Paramount’s offers so far and was siding with Netflix, until now!

Yeah, Warner Bros. Discovery seems satisfied with David Ellison’s offer, at last, or for the moment.

WBD acknowledged Paramount’s revised proposal, calling it a “Superior Proposal”, under the terms of its existing deal with the streaming giant.

Paramount is now proposing $31 per share, and that too in all cash, along with a ticking fee of $0.25 each quarter starting from September 30, 2026.

Above all that, Paramount is ready to cover up the $2.8 billion breakup fee WBD owes Netflix if their agreement gets nixed.

WBD says that it’ll continue talks to see how far this “superior proposal” can go under the Netflix agreement. And if it slants towards Paramount, then Netflix will have four business days to cast a far superior deal than their rival.

The most critical thing, WBD fears, is that, while Paramount’s deal falls apart, WBD could face severe financial exposure along with a hefty breakup fee to Netflix and leave the company in a weakened position. This output questions Netflix’s grip and shows that Paramount is deep in this war.

Both the Netflix-WBD and the Paramount-WBD mergers will need U.S. and European regulatory approvals for completion, and among critics, both deals have raised antitrust concerns.

Let’s see how it goes, and who decides what future for the movies!!!

^{Pic Credits: Google}