Warner Bros Discovery (WBD) Board of Directors determines revised Paramount Skydance (PSKY) proposal could reasonably be expected to lead to a "Company superior proposal"; proposal includes an increased purchase price of USD 31.00/shr (prev. 30.00)

• Revised proposal includes a daily ticking fee equal to USD 0.25 per quarter beginning after September 30, 2026.
• USD 7bln regulatory termination fee payable by PSKY in the event the transaction does not close due to regulatory matters.
• Payment by PSKY of USD 2.8bln termination fee that WBD would be required to pay to Netflix to terminate the existing Netflix merger.
• WBD will continue to engage with PSKY; the Netflix merger agreement remains in place.
• The board has not made a determination as to whether the revised PSKY proposal is Superior to the merger with Netflix.
• The board continues to recommend in favour of the Netflix transaction and is not withdrawing or modifying its recommendation

Warner Bros Discovery's revised engagement with Paramount Skydance suggests increasing pressure and competition for their existing merger with Netflix. While the higher purchase price reflects a potential shift in valuation, the board still favors the Netflix deal, indicating that more depth in the merger landscape is emerging. The substantial regulatory fees and ticking fee also highlight the complexities involved as WBD navigates these negotiations.