Warner Bros. Discovery Reconsiders Paramount Skydance Offer, Balancing Netflix Deal
Warner Bros. Discovery (WBD) is once again evaluating a potential deal with Paramount Skydance, despite having agreed to a $82.7 billion sale to Netflix in December. The move comes as Paramount Skydance has sweetened its offer, including a significant “ticking fee” for WBD shareholders, putting pressure on the Warner Bros. Discovery board to consider all options.
Paramount Skydance’s Latest Bid
Paramount Skydance’s latest proposal, the ninth since last year, features a premium “ticking fee” of approximately $650 million for each quarter the deal isn’t finalized by December 31, 2026. Variety and CNBC both reported on February 15, 2026, that the WBD board is leaning towards re-engaging with Paramount Skydance.
WBD’s Position and Shareholder Concerns
While the WBD board initially rejected Paramount Skydance’s overtures as insufficient to derail the Netflix agreement, the sale process has attracted intense scrutiny from investors and corporate governance watchdogs. Re-engaging with Paramount Skydance could be seen as fulfilling a fiduciary duty to investigate all legitimate offers, potentially mitigating the risk of shareholder lawsuits, which are virtually guaranteed in major transactions like this. Variety
Netflix’s Right to Match
Netflix retains the right to match any superior offer, as stipulated in the December agreement. WBD may be strategically attempting to push Paramount Skydance to present a “best and final offer,” which would then allow shareholders to make an informed decision and potentially prompt Netflix to increase its bid. CNBC
Key Differences in the Offers
The offers differ in scope. Netflix’s bid focuses on Warner Bros. And HBO Max, while Paramount Skydance aims to acquire the entirety of WBD, including its cable channels such as CNN, TNT, Discovery, HGTV, and Food Network. CNBC
Regulatory Hurdles and Shareholder Vote
The WBD-Netflix transaction is anticipated to face rigorous regulatory review, given Netflix’s dominant position in the streaming market and the current political climate surrounding media consolidation. WBD is also preparing for a shareholder vote to approve the Netflix deal, and it remains unclear whether Paramount’s revised offer will impact the voting timeline. Variety
Company Responses
Representatives from Warner Bros. Discovery, Paramount Skydance, and Netflix have declined to comment on the ongoing discussions. Variety
WBD is expected to address the Paramount Skydance offer and announce the date for its Q4 2025 earnings report early this week, following the Presidents’ Day holiday.