Paramount Outlines How It Will Pay $1 Billion-Plus in Fees After Warner Merger Delay
With the trial for its merger challenge set to run through mid-March, the studio is locked into paying at least $1.2 billion in fees to shareholders The post Paramount Outlines How It Will Pay $1 Billion-Plus in Fees After Warner Merger Delay appeared first on TheWrap .
Paramount Skydance CFO Dennis Cinelli revealed the studio's plans to cover the costs of the delayed $1.1 billion acquisition of Warner Bros. Discovery. The merger, now set to take place by June 2027, will incur expenses including $190 million in bridge fees, a $650 million ticking fee per quarter if the deal hasn't closed by Sept.
30, and a potential $7 billion termination fee if the state attorneys general prevail in their lawsuit. Cinelli expressed confidence in Paramount Skydance's liquidity, citing $1.6 billion in cash reserves and $3.2 billion in available revolving credit. The merger faces a March 2-19 trial against 12 state attorneys general, who argue the deal would decrease competition in the basic cable and theatrical markets.
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