Ashhar Alam/New Delhi
In a major development in Hollywood’s ongoing corporate consolidation battle, Paramount has escalated its pursuit of Warner Bros. Discovery (WBD) by placing a revised cash offer of USD 31 per share, reigniting merger discussions across the entertainment industry. The latest proposal, announced on February 24, 2026, marks a significant step in one of the most closely watched takeover battles in the global streaming and media sector.
Industry reports suggest that Paramount’s revised bid has prompted WBD to reopen negotiations, after the company acknowledged that the new offer could potentially qualify as a superior proposal under the terms of its existing agreement with Netflix. This development allows WBD to continue discussions with Paramount beyond the initially scheduled negotiation window.
Under the updated terms, Paramount increased its all-cash offer from USD 30 to USD 31 per share for full acquisition of WBD. The company has also modified financial incentives by advancing its quarterly ticking fee of USD 0.25 to begin after September 30, 2026, continuing until the deal is finalized. Additionally, Paramount has raised the regulatory termination fee to USD 7 billion to provide greater protection in case antitrust authorities block the transaction.
The company has further strengthened its proposal by committing additional equity funding to help satisfy solvency requirements set by WBD’s lending institutions. Paramount also revised contractual definitions related to material adverse effects, specifically excluding WBD’s global linear networks business from potential performance-related withdrawal clauses.
Paramount has also pledged to cover the USD 2.8 billion termination fee that WBD would owe Netflix if it decides to exit its existing agreement. The company has additionally removed a potential USD 1.5 billion financing cost linked to WBD’s debt restructuring arrangements.
A spokesperson for Paramount said the company remains optimistic about continuing constructive discussions with WBD, emphasizing that the proposal aims to benefit shareholders, creative stakeholders, and global audiences.
Meanwhile, WBD has reiterated that its agreement with Netflix remains active. Netflix’s existing offer stands at USD 27.75 per share for WBD’s studio and streaming assets, and the company’s board continues to recommend shareholder approval of the deal.
For any shift in partnership agreements, WBD’s board must first determine that Paramount’s revised proposal is superior. If approved, Netflix will have four business days to match the offer, failing which the existing merger agreement could be terminated and replaced with a new deal between Paramount and WBD.
Analysts believe the latest move highlights the intense competition in Hollywood’s streaming and studio consolidation race, where corporate strategy, content ownership, and shareholder value are driving multi-billion-dollar negotiations. With Paramount’s enhanced offer, WBD now faces a critical strategic decision that could reshape the global entertainment industry’s competitive dynamics.
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