Paramount Enhances Warner Bros. Discovery Bid

Paramount Global, through its Skydance Media affiliate, has revised its takeover offer for Warner Bros. Discovery, introducing a quarterly ticking fee and commitments to cover key financial risks in an effort to outmaneuver Netflix's pending acquisition. The enhancements, announced on Tuesday, build on Paramount's existing $30 per share all-cash proposal, valued at approximately $108 billion including debt, and come amid ongoing U.S. antitrust reviews by the Department of Justice.

Under the updated terms, Warner Bros. Discovery shareholders would receive an additional $0.25 per share for each quarter the deal remains unclosed after December 31, 2026. This provision, equivalent to about $650 million per quarter based on outstanding shares, aims to compensate investors for potential regulatory delays. Paramount also pledged to fund the $2.8 billion termination fee owed to Netflix if Warner Bros. Discovery ends its agreement with the streaming service. In addition, the company committed to reimbursing shareholders up to $1.5 billion in potential financing costs related to a debt exchange, without reducing its own $5.8 billion reverse termination fee in the event of regulatory blockage.