Paramount Skydance Enhances Bid for Warner Bros Discovery with New Financial Terms
Paramount Skydance has submitted a revised offer to acquire Warner Bros Discovery (WBD), introducing significant financial adjustments aimed at swaying the deal in its favor. The updated proposal includes a notable $2.8 billion payment to Netflix should the acquisition fall through, alongside commitments for quarterly shareholder payments that would escalate starting January 1, 2027, contingent on the deal not closing.
Background and Hostile Takeover Attempt
This move follows a hostile takeover bid by Paramount after WBD's board rejected its initial offer and instead endorsed a competing proposal from Netflix. In December 2025, Netflix placed a bid to acquire Warner Bros Discovery and its assets for approximately $82 billion. Paramount's cash offer remains steady at $30 per share, but the new terms incorporate a quarterly payment of 25 cents per share to shareholders, valued at around $650 million. This adjustment is designed to eliminate Warner's $1.5 billion financing cost associated with its debt exchange offer.
Financial Backing and Personal Guarantee
The revised offer is supported by substantial funding: $43.6 billion in equity from the Ellison family and RedBird Capital Partners, combined with $54 billion in debt from Apollo, Bank of America, and Citigroup. Notably, David Ellison's father, Oracle co-founder Larry Ellison, has provided a personal guarantee of $43.3 billion, underscoring the family's commitment to the acquisition.
Statements from Paramount and Warner Bros
In a statement, Paramount CEO David Ellison emphasized that the new additions to the bid "underscore our strong and unwavering commitment to delivering the full value Warner Bros. Discovery shareholders deserve for their investment." He added, "We are making meaningful enhancements — backing this offer with billions of dollars, providing shareholders with certainty in value, a clear regulatory path, and protection against market volatility."
Warner Bros Discovery has acknowledged receipt of Paramount's updated offer, stating it will "carefully review and consider" the revised bid. However, the WBD board has indicated it is "not modifying its recommendation" regarding its agreement to sell its studios, HBO, and HBO Max to Netflix. Shareholders have been advised not to take "any action at this time" on Paramount's offer.
Challenges and Industry Implications
Despite these enhancements, reports suggest that the changes may not be sufficient to convince WBD's board, which continues to support Netflix's competing offer. Paramount has expressed willingness to continue discussions, and the company has proposed assisting Warner in refinancing its $15 billion bridge loan. This high-stakes bidding war highlights the intense competition in the media and streaming sectors, with major players vying for control of valuable assets.
