Paramount Skydance has strengthened its takeover bid for Warner Bros Discovery, adding new financial incentives aimed at persuading shareholders to back its competing offer over Netflix’s proposed deal.
Paramount introduces quarterly “ticking fee”
The company confirmed it will pay an additional 25 cents per share for every quarter the transaction fails to close. This ticking fee will apply from January 1, 2027 until the Paramount deal is finalized, Reuters news report said.
The additional payment translates to roughly $650 million in cash per quarter, significantly raising the financial value of the bid over time and creating pressure to complete the transaction quickly.
Paramount offers to cover Netflix breakup fee
In another major concession, Paramount said it will fund the $2.8 billion termination fee Warner Bros Discovery would owe Netflix if the company walks away from its existing agreement with the streaming giant.
This move directly addresses one of the biggest financial barriers to switching partners and signals Paramount’s aggressive push to secure Warner Bros Discovery’s assets.
Battle for premium content and franchises intensifies
Both Netflix and Paramount view Warner Bros Discovery as a strategic prize due to its:
Leading film and television studios
Massive content library
Global franchises including Game of Thrones, Harry Potter and DC Comics characters such as Batman and Superman
Ownership of these franchises would significantly strengthen any media company’s streaming and entertainment ecosystem as competition intensifies across global platforms.
Paramount launches shareholder campaign
Paramount has already launched a strong media and investor outreach campaign promoting the advantages of its proposal. Despite these efforts, Warner Bros Discovery has so far rejected the David Ellison-led bid.
Investor vote on Netflix deal expected by April
Warner Bros Discovery is preparing to hold a special investor meeting to vote on the Netflix transaction. The streaming company expects the vote to take place by April, setting up a decisive moment in what has become one of the most closely watched media industry takeover battles.
High-stakes streaming consolidation The competing bids highlight the ongoing consolidation in the global entertainment industry. As streaming growth slows and content costs rise, companies are increasingly pursuing scale, premium intellectual property and global distribution power to stay competitive.
