Andrew Ross Sorkin (Co-anchor of Squawk Box) 00:00.070
we do have to break the news that we need to tell you about literally crossing the tape as we speak paramount skydance amending its thirty dollars per share all cash offer for warner brothers discovery in response to WB d's concerns about the bid paramount is still offering to
Andrew Ross Sorkin (Co-anchor of Squawk Box) 00:17.150
buy a hundred percent of the outstanding shares of WBD and assume all of the assets and liabilities the per share offer price is not changing it does not appear to be but paramount says in response to a warner brothers filing and comments made by WBD 's principals and advisers
Andrew Ross Sorkin (Co-anchor of Squawk Box) 00:34.470
instant television appearances including right here on squawk box that is now going to amend its offer in six different ways and i want to walk you through what they're saying here because it's really quite interesting what they're what they're what they're going to do here the
Andrew Ross Sorkin (Co-anchor of Squawk Box) 00:49.630
first larry ellison is now going to provide an irrevocable personal guarantee of forty point four billion dollars of the equity financing for the offer and any damages any damage claims against paramount you may remember that was a big issue that the board of warner brothers has
Andrew Ross Sorkin (Co-anchor of Squawk Box) 01:08.590
talked about saying it was in this revocable trust so ellison now saying he will not revoke the ellison family trust or adversely transfer its assets during the transaction the other pieces of this paramount now saying it's publishing records confirming the ellison family trust
Andrew Ross Sorkin (Co-anchor of Squawk Box) 01:27.510
owns approximately one point one six billion shares of oracle common stock and that all material liabilities of the elephant family trust are publicly disclosed that was also an important point because WBD 's board had had some questions about how much money was actually in
Andrew Ross Sorkin (Co-anchor of Squawk Box) 01:45.950
these trusts then paramount now saying it's revised its agreement offers improve flexibility to WBD on debt refinancing transactions representing and an interim operating covenant so that's another piece of this and then paramount also saying it plans to increase its regulatory
Andrew Ross Sorkin (Co-anchor of Squawk Box) 02:04.430
reverse termination fee so that fee now going to go from five billion dollars to five point eight billion dollars that effectively matches the fee that netflix would pay if in fact the government or regulators were to block the deal lastly the offer is now conditioned on W B D
Andrew Ross Sorkin (Co-anchor of Squawk Box) 02:22.710
continuing to own a hundred percent of its global networks businesses and that is important because it touches upon what's going to happen if in fact warner would try to spin something out early redbirds jerry cardinal is going to be with us cardinal is going to be with us to
Andrew Ross Sorkin (Co-anchor of Squawk Box) 02:40.230
talk about all of this and this revised bid in just a few minutes so you do not want to go anywhere as this breaking news takes place in what is perhaps the biggest deal in the media space