Warner Bros. Discovery Inc. (NASDAQ:WBD) shares rose 2% Tuesday after Paramount Skydance sweetened its $30 per share all-cash takeover offer with enhanced financial terms. The improved bid includes a $0.25 per share quarterly ticking fee starting January 1, 2027, if the deal remains incomplete by December 31, 2026, adding approximately $650 million in quarterly cash value.

Paramount has agreed to cover Warner Bros. Discovery's $2.8 billion termination fee to Netflix Inc. (NASDAQ:NFLX), addressing a major obstacle that led the WBD board to reject the initial offer in December 2025. The company will also eliminate WBD's potential $1.5 billion debt financing cost by backstopping a bond exchange offer, with a commitment to reimburse shareholders if the exchange fails.

The enhanced offer is backed by $43.6 billion in equity commitments from the Ellison Family and RedBird Capital Partners, plus $54.0 billion in debt commitments from Bank of America, Citigroup and Apollo. Larry Ellison has provided a personal guarantee of $43.3 billion. Paramount extended its tender offer expiration to March 2, 2026, with 42.3 million WBD shares already tendered as of February 9.