Paramount sweetens its offer for Warner Bros. Discovery - Los Angeles Times

Los Angeles Times

by Samantha Masunaga

February 10, 2026

AI-Generated Deep Dive Summary

Paramount Skydance has enhanced its bid for Warner Bros. Discovery by introducing a $2.8 billion "break fee" aimed at compensating Netflix if the merger falls through, along with an increased shareholder payment that grows each quarter after January 1, 2027, should the deal not close. These new terms were part of a revised offer sent to Warner Bros. Discovery's board, which has already endorsed a rival bid from Netflix. While Paramount remains open to further negotiations, it appears these additions are an attempt to counter the strong position held by Warner's board and its current agreement with Netflix. The revised offer includes a $250 million termination fee for Netflix and a "ticking fee" of 25 cents per share for Warner Bros. Discovery shareholders, which would total approximately $650 million in cash value each quarter after the transaction fails to close by January 1, 2027. Additionally, Paramount has agreed to cover Warner’s $1.5 billion debt exchange costs and provide flexibility for Warner to refinance its existing $15 billion bridge loan. The offer is fully financed with $43.6 billion in equity commitments from the Ellison family and RedBird Capital Partners, as well as $54 billion in debt commitments from major financial institutions including Apollo, Bank of America, and Citigroup. Warner Bros. Discovery confirmed receipt of Paramount’s new offer but emphasized that its board remains unchanged in recommending the sale to Netflix. The company urged shareholders not to take immediate action on Paramount’s tender offer while it reviews the revised terms. This latest move by Paramount highlights the intensifying competition in the media industry, with billions of dollars at stake and significant implications for the future landscape of streaming giants like Netflix and Warner Bros. Discovery. This bidding war underscores the high stakes involved in merging major entertainment companies, particularly as they compete to dominate the streaming space. The revised offer from Paramount not only reflects its determination to outbid Netflix but also signals a willingness to provide substantial financial protections and flexibility for Warner’s stakeholders. As the deal negotiations continue, the outcome will likely shape the future of media consolidation and set a precedent for similar transactions in the industry.

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Originally published on Los Angeles Times on 2/10/2026