Paramount's $110bn Warner takeover nears the finish line after legal settlements
Paramount's $110 billion takeover of Warner Bros. Discovery could close within the next two weeks.
As of 24 September, the deal was on track after the settlement of two antitrust lawsuits, meaning cases arguing the deal would harm competition, on the preceding Monday, according to Deadline. A federal judge has since delayed a hearing where she was due to review that settlement. The pause leaves the timetable intact for now, but not yet final.
Netflix had agreed last December to buy the studio and streaming business of Warner Bros. Discovery. Paramount then unseated its rival with a richer offer for all of the company. That followed more than a dozen offers.
Paramount settled with California and other states to clear a major hurdle for the takeover, Reuters reported. The agreement includes the creation of independent editorial boards for CNN and CBS. It also includes a $30 million penalty per film for any shortfall.
Paramount Skydance said on 14 August that it had satisfied all regulatory conditions under the merger agreement to close the acquisition, according to a company statement. The company had pitched a $30 per share all-cash offer for Warner Bros. Discovery, which it described as superior. That offer structure has been central to its public case to shareholders.
Dealmakers behind the financing discussed the fight at the Financial Times Business of Entertainment Summit. David Hernand, a partner at the Simpson Thacher law firm, said the transaction is evidence that "tech has won". Simpson Thacher is not involved in the Paramount deal.
Aaron Sobel, a private equity partner at Apollo Global Management, also took part in the panel. Apollo provided one-third of the financing for the merger. Alex Michael, senior managing director and global head of sports and entertainment for LionTree, completed the group. LionTree advised Paramount.
What makes this stand out is how quickly the buyer changed. One agreement with Netflix gave way to a full-company bid from Paramount. For viewers, the question now is timing. The deal team points to weeks. The court calendar will have the final word.
