Paramount's Dancing with the Stars bidding news emerges, Warner Bros. explores slight decline after hours

2026-02-24 22:53:11

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Investing.com - After Tuesday’s after-hours trading, Warner Bros. Discovery (NASDAQ:WBD) stock fell 1%, while Netflix (NASDAQ:NFLX) rose 1.5%, after Warner Bros. Discovery disclosed revised details of Paramount’s (NASDAQ:PSKY) acquisition proposal.

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Warner Bros. Discovery’s board has determined that the revised proposal from Paramount is reasonably expected to constitute a “superior proposal” as defined in the existing merger agreement with Netflix.

The revised proposal includes a cash purchase price of $31.00 per share, plus a quarterly $0.25 daily incremental fee starting after September 30, 2026. If the deal fails to close due to regulatory issues, Paramount will pay a $7 billion regulatory termination fee, and Warner Bros. Discovery will pay a $2.8 billion termination fee to terminate the existing merger agreement with Netflix.

The board has not yet determined whether Paramount’s revised proposal is superior to the Netflix merger. Warner Bros. Discovery will continue discussions with Paramount to evaluate whether a more favorable proposal can be reached. If the board ultimately concludes that a more favorable proposal has been received, Netflix will have four business days to negotiate and propose revisions to its deal.

The merger agreement with Netflix remains in effect, and the board continues to recommend the Netflix transaction without withdrawing or modifying its recommendation. There is no guarantee that the board will determine that Paramount’s proposal is superior, nor that ongoing discussions will result in any final agreement.

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