Paramount and Warner Bros. Discovery: Sale Talks Reopened Amidst Bidding War
Warner Bros. Discovery (WBD) is reconsidering sale negotiations with Paramount Skydance following an amended bid, according to reports from Bloomberg News . This development comes as both Paramount and Netflix have expressed interest in acquiring WBD, including its film studio and HBO Max streaming service.
Paramount’s Enhanced Offer
Paramount has been actively working to secure a deal with WBD. On February 9, 2026, Paramount Skydance certified compliance with the Department of Justice’s Second Request for Information regarding its all-cash tender offer . The offer includes a $30 per share all-cash deal, a ticking fee of 25 cents per share for each quarter the deal is delayed starting in 2027, and coverage of WBD’s $2.8 billion termination fee owed to Netflix . The ticking fee is estimated at approximately $650 million per quarter .
Netflix’s Position and Previous Agreements
In December, WBD initially agreed to a deal with Netflix valued at $27.75 per share . However, Paramount launched a hostile bid shortly after, offering $30 per share in cash. Netflix later amended its offer to an all-cash deal .
Shareholder Concerns and Investor Activity
The potential for a better deal or increased competition from Paramount is prompting WBD’s board to re-evaluate its options. Activist investor Ancora Holdings, with a nearly $200 million stake, has voiced opposition to the Netflix deal, arguing that the board did not adequately consider Paramount’s offer . Concerns also exist regarding potential regulatory hurdles with the Netflix deal.
Strategic Implications
Both Paramount and Netflix are eager to acquire WBD’s assets, including its film and television studios, extensive content library, and valuable franchises such as “Game of Thrones,” “Harry Potter,” and DC Comics properties . Paramount’s connection with Oracle creator Larry Ellison, who is backing the deal with $40 billion in equity, is seen as a potential advantage due to Ellison’s relationship with President Donald Trump .
WBD has until February 25 to respond to Paramount’s offer .