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Paramount Skydance has significantly raised the proposed breakup fee in its bid to acquire Warner Bros. Discovery (WBD) to $5bn from $2.1bn, as per sources. A report noted that the substantial increase in the fee would be paid to WBD if a deal is agreed to but not consummated, signaling Paramount Skydance’s confidence that its proposed merger would successfully clear regulatory hurdles. The move comes as WBD evaluates multiple acquisition proposals. The company is currently weighing offers from Paramount, Netflix, and Comcast. Paramount is seeking a full acquisition of WBD, whereas rival bids from Netflix and Comcast reportedly propose a spinoff of WBD’s cable network business. WBD’s board had previously rejected a nearly $60bn bid from Paramount and is reportedly seeking a higher valuation.
WBD’s 4.279% 2032s traded with a negative bias, at 87.1, yielding 6.8%.
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