It looks like Paramount Skydance still hasn’t given up its quest to acquire Warner Bros. Discovery. The company had been rejected repeatedly, with WBD in January telling its shareholders to stick to its deal with Netflix, after its hostile takeover attempts.
Paramount has now agreed to cover the breakup fee the HBO owner would owe Netflix if it walked away.
Paramount said on Tuesday that it has offered shareholders a 25-cent-per-share “ticking fee”, amounting to about $650 million in cash each quarter from early 2027 until the Warner Bros deal closes, signaling confidence the transaction will be completed relatively quickly.
While it did not raise its overall offer of $30 per share, or $108.4 billion including debt, Paramount aid it would fund the $2.8 billion termination fee that Warner Bros would owe Netflix if their $82.7 billion deal for its studio and streaming assets falls through.
READ: Netflix strikes deal to buy Warner Bros Discovery for $27.75 per share (
Both Netflix and Paramount have an eye on Warner Bros for its leading film and television studios, extensive content library and major franchises such as “Game of Thrones,” “Harry Potter” and DC Comics superheroes Batman and Superman.
Paramount would also acquire Warner Bros’ television networks, including CNN and TNT, which would be spun out into a separately traded company, Discovery Global, ahead of the Netflix merger.
According to The Wall Street Journal, activist investor Ancora Holdings has built a roughly $200 million stake in Warner Bros and plans to oppose the deal to sell its TV and film assets to Netflix. Ancora could announce its position as soon as Wednesday, the WSJ report said, adding that it plans to continue buying Warner shares.
The firm has privately informed Warner CEO David Zaslav that it is prepared to launch a proxy fight if the board fails to secure the best possible deal for shareholders with Paramount, according to the report.
Warner Bros holds a market capitalization of about $69 billion, according to LSEG-compiled data, making Ancora’s reported stake less than 1% of the company.
READ: Paramount moves on $108.4 billion hostile takeover of Warner Bros. Discovery (
Several analysts have commented on Paramount’s latest move, saying it signals the company’s confidence that the Netflix deal may fail to pass regulatory scrutiny, creating an easier path to approval. However, it may not be enough for investors, waiting for a higher offer.
“The sweetened deal is unlikely to sway WBD away from Netflix and toward Paramount.
Paramount is throwing spaghetti at the wall and hoping something sticks,” said Ross Benes, senior analyst at Emarketer. “Outside of raising its price, Paramount’s best chance at stealing WBD is from outside regulators blocking Netflix.”
Warner Bros said its board would review the revised offer but has not changed its recommendation in support of the Netflix deal.
Warner Bros shares were 2% higher, while Netflix gained 1.7% and Paramount was up 1.3% in afternoon trading.