To acquire Warner Bros. Discovery (WBD.US) Paramount Skydance (PSKY.US), splurge "break-up fee" to $5 billion.

According to informed sources, Paramount Skydance Corp. (PSKY.US) has raised the termination fee to over 5 billion US dollars in its proposal to acquire Warner Bros. Discovery Company (WBD.US), as part of its more generous offer to surpass competitors. Under the proposal, if the deal is agreed upon but ultimately not completed, Paramount will have to pay Warner Bros. Discovery the aforementioned amount. Sources indicate that this move shows Paramount's confidence in its merger plans passing regulatory scrutiny. Previously, Paramount had offered a termination fee of 2.1 billion US dollars. As the parent company of HBO and CNN, Warner Bros. Discovery is currently evaluating acquisition proposals from three media companies - Paramount, Netflix (NFLX.US), and Comcast Corporation Class A (CMCSA.US) - and may select a final buyer in the coming weeks. The company received a second round of bids earlier this week and has been in negotiations with relevant bidders since. The parent company of CBS, MTV, and other media assets, Paramount, triggered this acquisition bidding process by actively proposing acquisition offers to Warner Bros. Discovery after the latter officially launched the bidding process last October. Up to now, Paramount has submitted a total of five rounds of bids. The company intends to fully acquire Warner Bros. Discovery, while the proposals from Netflix and Comcast Corporation Class A anticipate splitting off Warner Bros. Discovery's cable television network business. Paramount claims that the split-off businesses would bring tax burdens to Warner Bros. Discovery, making their acquisition proposal more attractive. Although all three bidders will face strict regulatory scrutiny and concerns about job losses in Hollywood, Paramount is the smallest of the enterprises. Comcast Corporation Class A has the highest revenue, while Netflix has the highest market value. Another major advantage for Paramount is its close relationship with the current US government, which plays an active role in media regulation. Following its merger with Skydance Media last August, Paramount is now controlled by the family of Oracle Corporation (ORCL.US) chairman Larry Ellison. David Ellison, his son, serves as CEO of Paramount. Larry Ellison has been a significant supporter of President Trump, who has publicly praised the Ellison family. David Ellison stated in October last year that he maintains a "good relationship" with the Trump administration. Any merger deal with Warner Bros. Discovery would require approval from the US Department of Justice. Earlier, Republican Congressman Darrell Issa expressed antitrust concerns regarding Netflix's proposed acquisition of Warner Bros. Discovery, saying it could lead to excessive concentration in the streaming industry. It is reported that White House officials have also expressed concerns about Netflix's bid. In response, Netflix's management is actively engaging in public relations activities, attempting to win support from Warner Bros. Discovery's board of directors and political figures. However, Paramount has not yet put forward an offer that has convinced Warner Bros. Discovery's management. The Warner Bros. Discovery board has repeatedly insisted on a purchase price of $30 per share, which corresponds to a company valuation of nearly $75 billion (excluding debt). According to multiple sources, while the specific bid terms have not been disclosed, Netflix's offer is reportedly higher than Paramount's.