Warner Bros. Exploration stock price rises as Paramount increases acquisition offer

2026-02-12 03:09:50

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Investing.com - Warner Bros. Discovery (NASDAQ:WBD) stock rose 2% on Tuesday after Paramount Sky Dance Company (NASDAQ:PSKY) increased its all-cash offer to $30 per share through additional financial incentives.

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The improved bid now includes a quarterly “timing fee” of $0.25 per share, which will accrue starting January 1, 2027, if the deal is not completed by December 31, 2026. This will add approximately $650 million in cash value each quarter, demonstrating Paramount’s confidence in securing regulatory approval quickly.

In a major move, Paramount also agreed to pay Warner Bros. Discovery a $2.8 billion termination fee for Netflix (NASDAQ:NFLX), resolving a key financial obstacle to the deal. Warner Bros. Discovery’s board previously rejected Paramount’s offer in December 2025, citing it as not in the best interests of shareholders and not meeting the “superior proposal” criteria under the existing merger agreement with Netflix.

Paramount will also eliminate Warner Bros. Discovery’s potential $1.5 billion debt financing costs through a support bond exchange offer and has committed to compensate shareholders if the exchange fails and the deal is not completed.

This enhanced offer is supported by a $43.6 billion equity commitment from the Ellison family and RedBird Capital Partners, as well as debt commitments of $54 billion from Bank of America, Citigroup, and Apollo. Larry Ellison has provided a personal guarantee of $43.3 billion.

Paramount has extended its bid deadline to March 2, 2026. As of February 9, 42.3 million Warner Bros. Discovery shares have been tendered. Warner Bros. Discovery has not yet responded to this improved offer.

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