How Netflix Forced Paramount to Cough Up More for Warner Bros.
finance.yahoo.com

... David Ellison finally got what he wanted but his prize didn't come cheap.

His pursuit of Warner Bros. Discovery Inc. was nearly thwarted by a wealthy rival suitor, Netflix Inc., which ultimately forced Ellison's Paramount Skydance Corp. to shell out at least $31 billion more than it planned for the legendary Hollywood studio.

The staggering price, representing one of the biggest media deals in the past decade, came to $31-a-share in cash, or $111 billion including debt, and was high enough for Netflix to walk away rather than increase its offer of $27.75.

Ellison had to add in other sweeteners too, including securing additional backing of his billionaire father, taking on $57.5 billion in debt and agreeing to pay the $2.8 billion breakup fee to Netflix.

"We engaged with four bidders, which led to eight price increases and have thus far achieved a 63% increase in value versus the first offer received in September, delivering significant value for WBD shareholders throughout the process," Warner Bros. Chief Executive Officer David Zaslav told investors on a recent call to discuss earnings. ...