The news: Paramount Skydance has amended its financial commitments to Warner Bros. Discovery (WBD) as it continues its effort to beat Netflix as WBD’s preferred buyer.

• Paramount now says it will give WBD shareholders an additional $650 million quarterly if its takeover is not completed by the end of 2026. The company is also offering to cover the $2.8 billion breakup fee to Netflix.
• Paramount said it would remove a potential $1.5 billion financing cost tied to WBD’s debt exchange by fully backstopping the offer. The company would also reimburse WBD shareholders for the fee—with no reduction to the separate $5.8 billion reverse-termination fee—if the offer is blocked by regulators.
• Paramount maintains that this outcome is unlikely compared with the chance Netflix’s purchase will be blocked.
• The current expiration date for Paramount’s revised offer is March 2, 2026.

Where things stand: While WBD has not yet responded to Paramount’s amended offer, it has so far held firm in its preference for a Netflix purchase. WBD’s board has rejected Paramount Skydance CEO David Ellison’s acquisition overture eight times, notes Variety, and has not shown willingness to change its stance even with Paramount’s higher per-share, all-cash offer.

And while Paramount points to regulatory hurdles the Netflix deal will face, Netflix maintains the position that its acquisition would not constitute a monopoly over the subscription streaming or digital video markets. Netflix points to YouTube, the largest media platform in the US, as justification that it should not be considered as a virtual monopoly if the acquisition proceeds.