Paramount sweetens £80bn Warner Bros bid because it steps up efforts to gatecrash Netflix’s deal

Paramount has sweetened its £80billion offer for Warner Bros as it steps up efforts to gatecrash Netflix’s deal to buy the Hollywood studio.

In the latest twist in the blockbuster takeover battle, Paramount said it will cover the £2billion break-up fee that Warner Bros would have to pay Netflix if it terminates its agreed deal with the streaming giant.

Paramount, which is behind films such as The Godfather and Top Gun as well as TV shows such as Tulsa King starring Sylvester Stallone, also added a so-called ‘ticking fee’ of £485million. 

This would be payable to Warner Bros shareholders for each quarter beyond the end of this year that the transaction is not completed – suggesting it is confident of overcoming regulatory hurdles already facing Netflix, such as concerns over its dominance in streaming.

‘We are making meaningful enhancements,’ said Paramount boss David Ellison.

The board of Warner Bros has already backed the £60billion takeover of its film studios and HBO streaming arm by Netflix.

‘The sweetened deal is unlikely to sway Warner Bros away from Netflix and toward Paramount,’ said Ross Benes, senior analyst at forecaster eMarketer.

Muscling in: Paramount, which is behind TV shows such as Tulsa King starring Sylvester Stallone, pictured, is stepping up efforts to gatecrash Netflix’s deal to buy Warner Bros