Feb. 27 at 4:48 PM
The Math:
$NFLX =
$2.8B termination fee
WBD =
$31/share + daily “ticking fee” of
$0.25/quarter after Sept 30, 2026 or regulatory termination fee of
$7B
$PSKY = WBD total equity value of
$78B & an EV value of
$108B (including assumption of net debt & noncontrolling interest) +
$650M ticking fee for each quarter
WBD Net Debt:
$29B
Paramount will eliminate WBD’s potential
$1.5B financing cost associated w/ its debt exchange offer.
Banks:
$BAC $C $APO =
$57.7B
Ellison Family & Redbird Capital =
$45.7B
Est'd Cost Savings =
$9B (
$3B prior to merger &
$6B post)
Total Pro-Forma Debt on Paramount =
$91.2B (ex-fees)
Back of Napkin annual interest expense:
$6.12B
FY25 Combined Revs (Paramount & WBD) =
$67.4B
Combined EBITDA =
$14.5B by FY27
Paramount agreed to a “Company Material Adverse Effect” definition that excludes the performance of WBD’s Global Linear Networks business
