Paramount pays a $110 billion premium to sideline Netflix

Paramount successfully tabled a $110 billion bid to acquire the entirety of Warner Bros, overcoming a previously accepted offer from Netflix. This transaction came as a shock to many, because Paramount has agreed to pay the $2.8 billion break fee to release Warner Bros from its existing Netflix deal. Offering roughly $31 per share, this deal provides a significant financial incentive to shareholders, while Paramount assumes all the regulatory risk.