Paramount Extends WBD Takeover Offer with Ticking Fee: PXD(@$30) Tender

Paramount Pictures is extending its hostile takeover of Warner Bros. Discovery with a “ticking fee” of $0.25 per share per quarter after Dec. 31, potentially up to $650 million, and has pushed back its tender offer deadline to March 2. The cash offer remains $30 per share, with over 42.3 million shares validly tendered as of Jan. 21, down from 168.5 million. Paramount seeks full control via its $77.9 billion, $108 billion enterprise value bid, requiring more than 50% of Warner Bros.’ 2.48 billion shares. The company has also initiated a proxy fight and may extend the deadline further. Warner Bros. and Netflix maintain their December $72 billion merger, valued at $27.75 per share with debt, and expect a shareholder vote by April. Antitrust reviews by the U.S. Department of Justice and industry concerns over consolidation and jobs continue.