Paramount Hikes Warner Bros. Breakup Fee to $5 Billion (1)

Paramount Skydance Corp. more than doubled the proposed breakup fee in its offer to acquire Warner Bros. Discovery Inc. to $5 billion, according to people familiar with the company’s offer, part of a sweetened proposal designed to outshine rival bids.

The sum would be paid to Warner Bros. if a deal is agreed to but not consummated. It’s a sign Paramount has confidence its proposed merger would pass muster with regulators, said the people, who asked not to be identified because the terms haven’t been made public. Paramount had earlier proposed a $2.1 billion breakup fee.

Warner Bros., the parent ...