Warner Bros. Discovery stock rises after Paramount sweetens takeover offer

SelfRugger · 2026-02-13T22:49:32+00:00

Warner Bros. Discovery's stock increased by 2% following Paramount's enhanced takeover bid, which includes a quarterly ticking fee and coverage of WBD's termination fee to Netflix, easing previous financial obstacles to the acquisition.

SelfRugger

2026-02-13 22:49:32

Abstract generation in progress

Warner Bros. Discovery stock rises after Paramount sweetens takeover offer

Louis Juricic

Wed, February 11, 2026 at 12:00 AM GMT+9 1 min read

In this article:

PSKY

+1.92%

WBD

+2.26%

NFLX

+3.61%

Investing.com – Warner Bros. Discovery Inc. (NASDAQ:WBD) stock rose 2% Tuesday after Paramount Skydance Corporation (NASDAQ:PSKY) enhanced its $30 per share all-cash takeover offer with additional financial incentives.

The improved bid now includes a $0.25 per share quarterly “ticking fee” that would begin accruing January 1, 2027, if the transaction hasn’t closed by December 31, 2026. This would add approximately $650 million in cash value each quarter, demonstrating Paramount’s confidence in securing regulatory approval quickly.

In a significant move, Paramount has also agreed to cover Warner Bros. Discovery’s $2.8 billion termination fee to Netflix Inc. (NASDAQ:NFLX), addressing a major financial obstacle to the deal. The WBD board had previously rejected Paramount’s offer in December 2025, stating it wasn’t in shareholders’ best interests and didn’t qualify as a “Superior Proposal” under WBD’s existing merger agreement with Netflix.

Paramount will additionally eliminate WBD’s potential $1.5 billion debt financing cost by backstopping a bond exchange offer, with a commitment to reimburse shareholders if the exchange fails and the transaction doesn’t close.

The enhanced offer is backed by $43.6 billion in equity commitments from the Ellison Family and RedBird Capital Partners, plus $54.0 billion in debt commitments from Bank of America, Citigroup and Apollo. Larry Ellison has provided a personal guarantee of $43.3 billion.

Paramount has extended its tender offer expiration to March 2, 2026. As of February 9, 42.3 million WBD shares had been tendered. Warner Bros. Discovery has not yet responded to the improved offer.

Warner Bros. Discovery stock rises after Paramount sweetens takeover offer

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