Ellison Escalates Hostile Takeover Bid for Warner Bros. Discovery

David Ellison is intensifying his push to acquire Warner Bros. Discovery, with Paramount now dangling significant financial incentives to shareholders caught in the middle of the hostile takeover attempt.

Paramount says it will pay WBD shareholders $650 million for each quarter its competing deal remains unclosed, an offer set to begin next year. The payments are designed to offset uncertainty around regulatory approval, a process that could stretch months or even years. On top of that, Paramount is offering to cover WBD's $2.8 billion termination fee if the company walks away from its existing agreement with Netflix.

WBD's management has repeatedly turned down Ellison's overtures, standing behind its $83 billion Netflix deal. But in a hostile takeover, shareholders—not executives—get the final say. A special meeting to vote on the matter is expected in late March or early April.