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Further emphasizing their confidence, Paramount has included a $7 billion regulatory termination fee payable if the deal fails due to regulatory hurdles. This massive breakup fee signifies Paramount’s unwavering belief that they can surmount bureaucratic obstacles, including both U.S. and European regulators.
If the deal is delayed past September 2026 by a year or more, the offer automatically increases to $32 per share. In the worst case, Warner Brothers and its shareholders could walk away with $7 billion in cash if the deal falls apart. Such a hefty termination fee underscores Paramount’s bold operational stance and belief in their ability to navigate complex global regulatory regimes, including skepticism from EU antitrust bodies.