Paramount $PSKY ( ▲ 0.52% ) is trying once again to make its offer for Warner Bros. Discovery $WBD more attractive. The catch is that the headline price is not changing. The company kept its $30 per share all cash offer in place but added new financial perks aimed at easing concerns from WBD’s board.
Investors are watching closely as Paramount and Netflix $NFLX ( ▲ 1.14% ) continue to circle one of the biggest media deal battles in years.
More Sweeteners, Same Price Tag
Paramount $PSKY said it will pay WBD shareholders a ticking fee of $0.25 per share for every quarter the deal has not closed after the end of 2026. In other words, if regulators drag their feet, shareholders get a little extra while they wait.
The company also offered to cover the $2.8 billion termination fee tied to WBD’s existing deal with Netflix $NFLX. That fee has been a major sticking point, and Paramount’s move is designed to remove that obstacle. On top of that, Paramount said it would eliminate a potential $1.5 billion refinancing cost tied to WBD’s debt.
Trying to De-Risk the Deal
This is not the first time Paramount $PSKY has tried to strengthen its bid without lifting the per share number. A prior effort included a $40.4 billion personal guarantee from billionaire Larry Ellison, father of Paramount CEO David Ellison, to help reassure stakeholders about the financing.
These additions are all about reducing risk and uncertainty around the transaction rather than paying more upfront.
Netflix Still in the Lead
Even with the improved terms, market based event contracts suggest Netflix $NFLX remains the favorite to end up with Warner Bros. Discovery $WBD. Paramount’s odds ticked up slightly after the announcement, but not enough to flip the narrative.
Until Paramount $PSKY raises its actual per share offer, it may keep adding bells and whistles while still falling short of a knockout bid.