Warner Bros. Reopens Paramount Takeover Talks Amid Netflix Deal

Fresh York – Warner Bros. Discovery (WBD) has briefly reopened takeover negotiations with Skydance-owned Paramount Global, seeking a “best and final” offer, even as it continues to back its existing streaming and studio deal with Netflix. The move comes after receiving a waiver from Netflix, allowing a seven-day period for discussions.

Netflix Waiver and Paramount’s Pursuit

Warner Bros. Discovery announced on Tuesday that it had secured a waiver from Netflix, permitting discussions with Paramount Skydance (PSKY) until February 23, 2026 . This allows WBD to address “deficiencies” in Paramount’s offer and clarify certain terms. Paramount launched a hostile tender offer to WBD shareholders after its initial bid was rejected in favor of the Netflix deal .

The Bidding War: Netflix vs. Paramount

Initially, Warner Bros. Rejected Paramount’s $108 billion offer to acquire the entire company, opting instead for a $83 billion deal focused on streaming and studio businesses with Netflix . The price per share for the Netflix deal is $27.75. Paramount disagreed with WBD’s assessment and pursued a direct appeal to shareholders with a hostile bid.

Paramount’s Revised Offer

Paramount has revised its proposal twice over the past two months, addressing concerns raised by the Warner Bros. Board. While Paramount has stated its $30 per share, all-cash offer is not its “best and final,” a senior Paramount representative reportedly indicated a willingness to pay $31 per share if negotiations reopened . The company also offered to cover $2.8 billion in penalties associated with terminating the Netflix contract and guarantee Warner Bros.’ debt costs. Paramount proposed paying approximately $650 million in cash to Warner Bros. Shareholders quarterly, starting in 2027, if the deal’s closing is delayed.

Netflix’s Position and Shareholder Vote

Netflix remains confident that its transaction “provides superior value and certainty” but acknowledges the disruption caused by Paramount’s pursuit . A special meeting is scheduled for March 20 to allow shareholders to vote on the proposed merger with Netflix. Some Warner Bros. Investors, including Pentwater Capital Management, have urged the company to reconsider negotiations with Paramount.

Regulatory Considerations

Paramount CEO David Ellison has questioned whether Netflix’s acquisition plan would gain regulatory approval. Warner Bros. Discovery is currently submitting the Netflix merger and acquisition report to U.S. Authorities for approval.