"Although Paramount's offer is higher, Warner Bros.' contends that Paramount's owners, the Ellison family, didn't offer a "full backstop" commitment to provide the money to cover its offer and that it can walk away from the transaction without paying any penalty. By comparison, Netflix and Warner Bros. have a $5 billion breakup fee if their deal fails to close or meet regulatory approval. Warner Bros. also contends that the proposed Paramount deal will not be approved by regulators."
"Warner Bros.' guidance isn't binding, and its shareholders could still reject the Netflix deal in favor of the higher bid from Paramount. But there may be reason to question Paramount's ability to close the deal. Jared Kushner's Affinity Partners apparently dropped its support for Paramount's bid earlier this week. Kushner--who is the son-in-law of President Donald Trump--is also one of the backers of the deal to purchase EA by Saudi Arabia's PIF, which may leave that country with almost full control of the company."
Netflix offered $82.7 billion for Warner Bros., while Paramount launched a hostile $108.4 billion bid. Warner Bros.' board, led by Samuel A. Di Piazza Jr., recommends rejecting Paramount's offer, arguing the Ellison family failed to provide a full backstop and could walk away without penalty. Netflix's proposed deal includes a $5 billion breakup fee. Warner Bros. warns of regulatory hurdles for the Paramount proposal, though Netflix's deal also faces approval risks. Affinity Partners reportedly withdrew support for Paramount. An acquirer would gain Warner Bros.' game developers and control of DC, Harry Potter, and Mortal Kombat franchises.
Read at GameSpot
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