Warner Bros. Discovery Reopens Takeover Talks with Paramount Amid Netflix Deal

Warner Bros. Discovery (WBD) has briefly resumed negotiations with Paramount Skydance regarding a potential takeover, granting the rival media company a week to submit its “best and final” offer. This move comes as WBD continues to back its existing agreement with Netflix for the sale of its studio and streaming assets.

Netflix Grants Waiver for Negotiations

Despite a previously agreed-upon deal with Netflix valued at approximately $83 billion for WBD’s studio and streaming platform – including the “Harry Potter” franchise – Netflix has provided a waiver allowing WBD to entertain Paramount Skydance’s proposal. This waiver, valid until February 23, 2026, allows WBD to assess whether Paramount Skydance can offer superior value and certainty for shareholders. Netflix’s willingness to allow these discussions signals a desire to resolve the situation quickly and finalize a deal.

Paramount Skydance’s Offer and Strategy

Paramount Skydance has proposed acquiring the entirety of Warner Bros. Discovery, encompassing cable networks such as CNN, TBS, and TNT. The initial offer stood at $30 per share, but discussions suggest a potential increase to $31 per share. Paramount Skydance argues its offer is financially more attractive and faces less scrutiny from antitrust regulators than the Netflix deal. To further incentivize the agreement, Paramount is prepared to cover any costs incurred by WBD for terminating the Netflix contract and potentially offer a “ticking fee” – an interest rate applied per quarter until the deal is finalized by the end of 2026.

WBD Board and Shareholder Vote

Although negotiations with Paramount Skydance have resumed, the Warner Bros. Discovery board continues to recommend shareholders support the agreement with Netflix. A shareholder vote on the Netflix offer is scheduled for March 20, 2026. The board maintains that the Netflix transaction provides greater value and certainty. Still, some shareholders are reportedly pressuring the board to seriously consider Paramount Skydance’s offer, indicating differing priorities among WBD’s investors.

Market Reaction and Future Prospects

The resumption of talks has generated market speculation, with slight fluctuations in the stock prices of Warner Bros. Discovery, Paramount, and Netflix. Analysts suggest that to gain the support of the WBD board, Paramount Skydance’s offer may need to reach $33-$34 per share. The situation remains complex, with Paramount Skydance’s final bid expected next week potentially altering the course of this high-stakes battle for ownership among media giants.