There are moments in business where ambition reveals itself not in quiet consensus, but in determined counterpoint — like a soloist who lifts their voice against an established chorus. In the sprawling symphony of Hollywood’s corporate landscape, that solo has swung back into the spotlight this week, as rival bidders vie for control of one of America’s most storied studios.
Paramount Skydance has sweetened its hostile takeover offer for Warner Bros. Discovery, escalating its effort to derail an existing acquisition agreement with Netflix and persuade Warner’s shareholders to back its rival bid. The enhancements — including a new “ticking fee” payable if the deal is delayed and a pledge to cover the breakup costs associated with Warner’s contract with Netflix — reflect Paramount’s desire to make its proposal more attractive in the face of stiff resistance.
Under the revised terms, Paramount continues to offer $30 in cash per Warner share — a premium that values the company at about $108 billion including debt — but now promises shareholders a 25-cent “ticking” payment per share for each quarter the transaction is delayed beyond the end of 2026, amounting to roughly $650 million per quarter. The offer also includes a commitment to fund Warner’s roughly $2.8 billion termination fee owed to Netflix if the current merger agreement is unwound.
The bid has been extended several times as Paramount seeks to gain traction with investors. Paramount is also backing its proposal with significant financing guarantees, including support tied to Oracle co-founder Larry Ellison, whose family trust has increased its personal equity commitments.
For Warner Bros. Discovery, the competition underscores the complicated dynamics at play. Earlier, the board rejected Paramount’s initial hostile approach, deeming it inadequate and riskier than the rival deal with Netflix. Under the existing Netflix agreement, the streaming giant would purchase Warner’s studio and streaming assets for about $83 billion, in a transaction that has won the support of Warner’s board for its clarity and binding terms.
Paramount’s latest move comes as the media industry grapples with shifting competitive landscapes — where legacy content libraries, streaming platforms, and cable networks factor into an evolving calculus of value. A hostile bid’s success depends not only on financial incentives but on confidence in execution and regulatory clearance, realms in which both suitors must make their case.
The tender offer deadline has been extended into early March as Paramount pushes for shareholder consideration, even as Warner’s board has reaffirmed its preference for the Netflix transaction. Paramount, undeterred, argues its enhanced terms and financial commitments offer shareholders long-term value and certainty in a sector marked by rapid change.
In gentle closing news: Paramount has sweetened its hostile takeover bid for Warner Bros. Discovery, adding quarterly payments and other financial incentives in an effort to counter Netflix’s competing acquisition agreement and attract support from Warner shareholders as the tender deadline approaches.
AI Image Disclaimer Visuals are created with AI tools and intended for representation, not reality.
Sources (Media Names Only) Reuters Bloomberg News The Wall Street Journal CNBC The New York Times