Warner Bros

Paramount is intensifying its efforts to take over Warner Bros. Discovery. On Tuesday, the company offered Warner shareholders an added “ticking fee” if the deal doesn't close by year-end. Paramount also pledged to fund Warner's proposed $2.8 billion breakup payout to Netflix under their merger agreement. Paramount's offer otherwise remains at the same price of $30 per share in cash. Paramount aims to buy Warner for $77.9 billion but needs more shareholder support — and is again extending the deadline for its tender offer, which is now March 2. Meanwhile, Warner's leadership has continued to back its $72 billion studio and streaming deal with Netflix. Both deals face tremendous antitrust scrutiny.

Warner Bros. Discovery is briefly reopening takeover talks with Skydance-owned Paramount to hear the company’s “best and final” offer, while the Hollywood giant continues to back the studio and streaming deal it struck with Netflix. In a Tuesday regulatory filing, Warner said that Netflix had granted it a waiver to open discussions with Paramount for seven days. Paramount now has until Feb. 23 to negotiate a possible transaction. But in the meantime, Warner’s board is still recommending shareholders support of its proposed merger with Netflix. A special meeting is now scheduled for Friday, March 20 to hold a vote on that deal.

Netflix is declining to raise its offer to buy Warner Bros. Discovery’s studio and streaming business in a stunning move that effectively puts Paramount in a position to take over its storied Hollywood rival. On Thursday, after Warner’s board announced that Skydance-owned Paramount’s offer was superior to the agreement it had previously struck with Netflix, the streaming giant said the new price that would be required to buy Warner would make it a deal that is “no longer financially attractive.” Unlike Netflix’s bid, Paramount wants all of Warner’s operations, including networks like CNN and Discovery. That would put CNN under the same roof as Paramount’s CBS and combine two of Hollywood’s last five remaining studios.