Paramount Raises Offer to $31 Per Share for Warner Bros. Discovery
Paramount Skydance raised its takeover offer to $31 per share and promised a $7 billion regulatory break fee plus covering a $2.8 billion Netflix termination fee.
DeadlineParamount Welcomes WBD Talks, Details New Elements Of Sweetened $31-A-Share Offer
BBC NewsParamount boosts Warner Bros offer to rival Netflix in takeover bid
PBS NewsHourParamount has raised its takeover offer to $31 per share, Warner Bros. says
ARS TechnicaWBD says Paramount’s new, higher offer could be “superior” to Netflix's
Overview
Paramount Skydance increased its offer for Warner Bros. Discovery to $31 per share and said it would pay a $7 billion regulatory termination fee, the companies said.
Warner Bros. Discovery said it received the revised proposal and that its board has not made a final determination while continuing to recommend the Netflix transaction.
WBD said that if its board determines Paramount’s proposal is superior, Netflix would have four business days to match the offer.
Paramount agreed to start a $0.25-per-quarter ticking fee after September 30, 2026 and to pay WBD’s $2.8 billion termination fee to Netflix, the company said.
WBD has set a March 20 special meeting for stockholders to vote on the Netflix agreement while the Netflix merger agreement remains in effect, the company said.
Analysis
Center-leaning sources frame the story as a high-stakes corporate showdown, using loaded terms like "heated bidding war" and "spurned" and highlighting Ellison's political ties and lawmakers' monopoly concerns. They prioritize deal-price drama and strategic impact, selectively emphasizing competitive tension while treating executive quotes as source content, not editorial claims.
FAQ
Paramount's revised offer consists of $31 per share for Warner Bros. Discovery, plus $7 billion in regulatory termination fees and $2.8 billion to cover WBD's Netflix termination fee. This represents a significant increase from previous proposals and demonstrates Paramount's commitment to acquiring the media company despite regulatory and contractual challenges.
Paramount agreed to cover the $2.8 billion Netflix termination fee to remove a major financial obstacle preventing WBD from abandoning its pending Netflix merger agreement. This sweetener was designed to make the Paramount acquisition more financially attractive by eliminating the cost WBD would otherwise owe to Netflix if it chose to pursue Paramount's offer instead.
If WBD's board determines that Paramount's proposal is superior to the Netflix agreement, Netflix would have four business days to match or exceed Paramount's offer. This provision allows Netflix to remain a competing bidder and retain the option to retain WBD by improving its own proposal terms.
WBD has scheduled a special stockholders meeting for March 20, 2026, to vote on the Netflix merger agreement. The company stated that the Netflix merger agreement remains in effect, and the stockholder vote will determine whether shareholders approve the Netflix transaction or allow the board to pursue alternative proposals like Paramount's offer.
Paramount agreed to implement a ticking fee of $0.25 per quarter that will begin after September 30, 2026. This ongoing fee compensates WBD shareholders for the delay in completing the transaction and increases the value of Paramount's offer if the deal extends beyond that date, incentivizing faster deal completion.