Washington [US], February 25 : In a major twist in the Hollywood corporate landscape, Paramount has officially stepped up its pursuit of Warner Bros. Discovery (WBD) with a sweetened USD 31-per-share cash offer, prompting WBD to reopen merger talks.
The announcement, made on February 24, 2026, marks the most significant escalation in a bidding war that has drawn industry-wide attention.
As per Deadline, Paramount confirmed on Tuesday evening that it "welcomed" WBD's board determination that the revised offer could potentially qualify as a "Company Superior Proposal" under the terms of WBD's existing merger agreement with Netflix.
The development allows WBD to extend negotiations with Paramount, originally set to last seven days, beyond Monday.
Under the updated proposal, Paramount has raised the cash offer to USD 31 per share for full ownership of WBD, up from the previous USD 30 per share.
The revised bid also accelerates the USD 0.25-per-quarter "ticking fee" to begin after September 30, 2026, until the transaction's completion.
As per Deadline, Paramount has further increased the regulatory termination fee to USD 7 billion should the deal be blocked by regulatory authorities.
The company has agreed to provide additional equity funding as necessary to meet solvency certificate requirements from PSKY's lending banks and refined the "Company Material Adverse Effect" definition to exclude WBD's Global Linear Networks business.
This move closes a loophole that could have allowed Paramount to withdraw if WBD's cable operations underperformed.
Paramount also reaffirmed its commitment to cover the USD 2.8 billion termination fee WBD would owe Netflix if it cancels the existing agreement, and to eliminate the potential SUD 1.5 billion financing cost tied to WBD's debt exchange offer.
"Paramount looks forward to continuing to engage constructively with WBD to deliver the benefits of Paramount's proposal to WBD shareholders, the creative community and consumers," a company spokesperson said.
WBD emphasised that while talks with Paramount are ongoing, its agreement with Netflix remains in force. Netflix's offer stands at SUD 27.75 per share for WBD's studios and streaming operations, and the board continues to recommend that shareholders approve the deal, as per Deadline.
Shifting deal partners would require several steps. WBD's board must first determine that Paramount's revised proposal is indeed superior. If approved, Netflix would have four business days to match the offer. Failure to do so could lead to termination of the Netflix merger agreement and the execution of a definitive deal between Paramount and WBD.
As per Deadline, industry analysts say the development underscores the high stakes in Hollywood's mega-merger arena, where streaming wars, studio consolidation, and shareholder returns intersect. With Paramount's new terms, WBD faces a pivotal decision that could reshape the entertainment landscape and redefine the competitive balance among major studios and streaming platforms.