Warner Bros. Discovery (WBD) on Tuesday said it would reopen merger discussions with Paramount Skydance (PSKY) under a limited seven-day waiver granted by Netflix, allowing the media company to clarify “deficiencies” in Paramount’s offer to acquire WBD’s businesses.
The waiver, which expires February 23, comes as WBD navigates competing bids for its streaming and studio operations following a high-profile bidding war. Paramount launched a hostile tender offer directly to WBD shareholders at $30 per share in an effort to outmaneuver Netflix, which had previously agreed to acquire WBD under a separate merger agreement.
“Netflix has provided WBD a limited waiver … permitting WBD to engage in discussions with Paramount Skydance for a seven-day period to seek clarity for WBD stockholders and provide PSKY the ability to make its best and final offer,” WBD said in a statement.
During this period, the company said it would discuss unresolved issues and clarify terms of the proposed deal. Paramount has indicated its $30 per share offer is not its “best and final,” and a senior representative reportedly told a WBD board member that the company would pay $31 per share if talks resume.
WBD Chief Executive David Zaslav said the engagement is focused on “maximizing value and certainty for WBD shareholders” and that the board is assessing whether Paramount can deliver a binding proposal that surpasses the Netflix transaction in value and reliability.
The seven-day window reflects WBD’s contractual obligations to Netflix, which retains matching rights under its existing merger agreement once the waiver expires. Netflix said the waiver was intended to “allow them to engage with PSKY to fully and finally resolve this matter,” while emphasizing confidence in its own pending transaction.
“While we are confident that our transaction provides superior value and certainty, we recognize the ongoing distraction for WBD stockholders and the broader entertainment industry caused by PSKY’s antics,” Netflix said in a statement.
WBD also announced that a special shareholder meeting will be held March 20 to vote on the Netflix deal. The company’s board continues to unanimously recommend the Netflix transaction over Paramount’s offer. Netflix described the meeting as “an important milestone” for completing its acquisition of WBD’s streaming and studio assets.
Paramount has sought to improve its offer in recent weeks, adding enhancements to sweeten the deal, though it did not initially raise the per-share price above US$30. The company is now under pressure to present a binding proposal during the waiver period, or risk losing the opportunity to Netflix.
Shares of WBD and Paramount each rose roughly 3 percent in premarket trading Tuesday following the announcement, reflecting investor optimism that the waiver could lead to a higher bid for shareholders. Analysts say the brief negotiation window underscores the intensity of competition for major media assets and the influence of shareholder decisions on the outcome of high-stakes deals.
Industry experts noted that Netflix’s willingness to grant the waiver highlights the platform’s commitment to its own agreement while accommodating the potential for Paramount to present a competing offer. The move is intended to prevent legal challenges or shareholder disputes from delaying the closing of the Netflix transaction.
The renewed talks come amid a broader consolidation trend in the entertainment sector, where traditional studios and streaming services continue to vie for scale and content ownership. Paramount’s aggressive approach, including a direct tender offer, reflects the high stakes and growing value of streaming and studio assets in a shifting media landscape.
As WBD navigates the waiver period, investors and industry observers will watch closely whether Paramount can deliver a credible, enhanced offer, and how Netflix responds once the seven-day window expires. The outcome could reshape ownership of one of Hollywood’s largest entertainment companies and influence the strategic positioning of its streaming and studio operations worldwide.
The battle for Warner Bros. Discovery (WBD) has emerged as one of the most closely watched media deals of 2025–2026, reflecting the high stakes in global streaming and content production. WBD, the result of the 2021 merger between WarnerMedia and Discovery Inc., owns major film and television studios, including Warner Bros., HBO, and Discovery-branded channels, as well as a streaming platform portfolio.
Netflix had initially agreed to acquire WBD’s streaming and studio businesses under a multi-billion-dollar deal, aiming to expand its content library and production capabilities in a market increasingly dominated by original streaming content. The deal was positioned as a strategic move for Netflix to bolster its competitive edge against rivals such as Disney+, Amazon Prime Video, and Apple TV+.
Paramount Skydance, a joint venture between Paramount Global and Skydance Media, entered the fray after losing the initial bidding process. Paramount launched a hostile tender offer directly to WBD shareholders at $30 per share in cash, bypassing WBD management in an effort to outbid Netflix. The move underscores the fierce competition for premium content assets and the ongoing consolidation in the entertainment sector.
The negotiations are complicated by WBD’s merger agreement with Netflix, which includes matching rights and clauses that can limit engagement with other potential bidders. Netflix granted WBD a limited seven-day waiver to reopen discussions with Paramount, allowing the company to evaluate and clarify outstanding issues in Paramount’s offer without triggering contractual penalties.
The market for such transactions is shaped by shifting consumer habits, with streaming services increasingly central to global media consumption. Content libraries, intellectual property rights, and production infrastructure have become strategic assets, driving aggressive bidding and occasional hostile offers. Analysts see Paramount’s strategy as an attempt to secure a foothold in premium content production, particularly as streaming competition intensifies in North America and Europe.
Financially, WBD shareholders stand to benefit from the competitive tension, as any enhanced offer from Paramount could raise the final transaction value. At the same time, Netflix’s focus on completing the merger emphasizes certainty and speed, critical for investor confidence and integration planning.
Industry observers also note that shareholder approval and regulatory review will play key roles in determining the deal’s outcome. WBD’s board has consistently recommended the Netflix transaction, citing superior value and certainty, while Paramount’s offer remains contingent on successfully convincing shareholders to reject the Netflix deal.
The situation illustrates broader trends in media and entertainment, including the shift from traditional broadcast and cable networks to streaming-first strategies, the importance of original content libraries, and the intensifying competition among global media conglomerates to secure scale and market share.
