Paramount is moving forward with plans to acquire Warner Bros Discovery (WBD) by relocating its Class B shares from NASDAQ to the New York Stock Exchange (NYSE) in early October, the company announced late last week.
The plan was disclosed in a regulatory document filed with the U.S. Securities and Exchange Commission (SEC). Under the current timeline, trading of Paramount’s Class B common stock would end on the NASDAQ at the close of market on October 5 and begin on the NYSE the following day.
Paramount said the timing of the move could change because the WBD transaction remains pending and is subject to additional closing conditions.
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Paramount CEO David Ellison told employees last week that the merger was tentatively on track to close about two weeks after Paramount reached legal settlements with state attorneys general and the Writers Guild of America. That timeline would place the expected closing around October 5.
A federal judge is scheduled to hold a hearing this week to review the settlement and hear from parties involved in the lawsuits. The hearing was pushed back from last Thursday.
The timing carries significant financial implications for Paramount. If the deal does not close by October 1, the company has agreed to pay Warner Bros Discovery shareholders a roughly $7 million-per-day ticking fee. The fee was added earlier this year as part of Paramount’s effort to secure the WBD transaction.
