Warner Bros. Discovery Reopens Talks with Paramount Amid Netflix Bid

Warner Bros. Discovery (WBD) is once again in discussions with Paramount Skydance, responding to a revised offer and a temporary waiver granted by Netflix, which currently has a deal in place to acquire portions of WBD. The move introduces further complexity into a rapidly evolving media landscape, with regulatory hurdles and shareholder considerations looming large.

Netflix Grants WBD a Seven-Day Window

On Tuesday, February 17, 2026, Netflix granted WBD a seven-day waiver, expiring February 23, 2026, to engage in negotiations with Paramount Skydance. This allows Paramount to present its “best and final” offer and address remaining deficiencies in its proposal. CNBC reported that Paramount’s initial offer was for $30 per share in cash, but the company has indicated it is not its final bid.

Paramount’s Revised Offer and Hostile Bid

Paramount has sweetened its offer to $31 per share if talks reopen, according to statements made to WBD’s board. The Associated Press notes that Paramount launched a hostile tender offer directly to WBD shareholders after its initial bid was rejected in favor of Netflix. Paramount argues its all-cash offer is financially superior to Netflix’s $27.75 per share bid for WBD’s streaming and studio assets.

WBD’s Position and Shareholder Vote

Despite entertaining Paramount’s offer, WBD’s board continues to recommend shareholders approve the existing deal with Netflix. A special shareholder meeting is scheduled for March 20, 2026, to vote on the Netflix transaction. WBD CEO David Zaslav stated the company is focused on maximizing value and certainty for shareholders and will evaluate Paramount’s proposal accordingly. CBS News reported Zaslav’s comments on the ongoing process.

Netflix’s Confidence and Regulatory Concerns

Netflix remains confident its deal with WBD offers superior value and certainty. Netflix co-CEO Ted Sarandos criticized Paramount’s tactics, describing them as an attempt to “flood the zone with confusion” for shareholders. CNBC reported Sarandos’s statement. However, both potential acquisitions face regulatory scrutiny.

Regulatory Hurdles and Foreign Investment

The proposed purchases raise antitrust concerns. A Netflix-WBD merger could consolidate power in the streaming market, potentially leading to higher consumer prices. Paramount’s deal, partially financed by sovereign wealth funds from Saudi Arabia, Abu Dhabi, and Qatar, is expected to face scrutiny from the Committee on Foreign Investment in the United States (CFIUS) and European authorities. CBS News highlighted these regulatory challenges. Netflix anticipates European regulators will be particularly skeptical of the Middle Eastern investors involved in Paramount’s consortium.

Market Reaction

Following the announcement, shares of Warner Bros. Discovery gained almost 3% on Tuesday, February 17, 2026, while Paramount shares increased by approximately 5%.