Paramount Skydance improves its acquisition offer for Warner Bros Discovery through incremental fee increases

LootboxPhobia · 2026-02-12T11:27:20+00:00

Warner Bros Discovery stock price rose by 1.8% as Paramount Skydance increased the financial incentives for the acquisition offer, including incremental fees and penalties for breaching existing agreements, to enhance the attractiveness of the takeover proposal.

LootboxPhobia

2026-02-12 11:27:20

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Investing.com – Warner Bros Discovery (NASDAQ:WBD) stock rose 1.8% to $27.71 after Paramount Skydance (NASDAQ:PSKY) improved its acquisition offer through additional financial incentives.

Paramount Skydance added an “incremental fee” clause to its bid for Warner Bros Discovery, committing to pay an extra $0.25 per share for each quarter the deal is delayed beyond this year. This fee will amount to approximately $650 million in cash per quarter from early 2027 until the transaction is completed.

In addition to the incremental fee, Paramount Skydance also agreed to bear the penalty fee Warner Bros Discovery would owe if it terminates the existing agreement with Netflix (NASDAQ:NFLX).

This enhanced offer is an effort by Paramount Skydance to make its acquisition proposal more attractive to the owner of HBO and its shareholders.

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