Paramount has strengthened its hostile US$30-per-share bid for Warner Bros Discovery (WBD) without increasing the overall offer price.
The company said it will add a 25-cent-per-share quarterly increase if the deal does not close by December 31, 2026, a move that would amount to roughly US$650m per quarter.
Paramount has also offered to cover Netflix’s US$2.8bn termination fee, as well as a potential US$1.5bn debt refinancing cost. The move comes in response to Netflix’s US$82.7bn agreement to acquire WBD’s studio and streaming assets.
Netflix recently revised its proposal to an all-cash offer valued at US$27.75bn. Paramount’s financing plan includes more than US$40bn in equity backing from Larry Ellison, along with US$54bn in debt commitments from major banks.
WBD’s management has argued that Paramount’s offer is inferior to Netflix’s and has questioned the certainty of its financing. The transaction is subject to regulatory scrutiny in both the US and Europe. David Ellison has described the proposed Netflix–WBD combination as “monopolistic,” while Netflix maintains that the deal would strengthen competition.
Netflix shares have fallen more than 30% since its interest in WBD was first reported in October.
