Warner Bros. Discovery has been granted a seven-day waiver by Netflix to reopen negotiations with Paramount Skydance, injecting recent volatility right into a high-stakes battle for considered one of Hollywood’s most beneficial mixtures of streaming, studio and cable property.
The non permanent permission — which runs by way of February 23, 2026 — permits WBD to have interaction immediately with Paramount Skydance to handle what it described as unresolved “deficiencies” in Paramount’s hostile supply, at the same time as WBD continues to advocate its pending transaction with Netflix. The corporate additionally mentioned on Tuesday it will maintain a particular shareholder assembly on March 20.
Netflix offers WBD a slender window to check Paramount’s supply
In a press release, Warner Bros. Discovery confirmed that Netflix had agreed to loosen restrictions underneath its merger settlement, enabling WBD to carry discussions with Paramount Skydance for a restricted interval.
“Netflix has supplied WBD a restricted waiver underneath the phrases of WBD’s merger settlement with Netflix, allowing WBD to have interaction in discussions with Paramount Skydance for a seven-day interval ending on February 23, 2026 to hunt readability for WBD stockholders and supply PSKY the power to make its greatest and remaining supply,” Warner Bros. Discovery mentioned in a launch.
“Throughout this era, WBD will have interaction with PSKY to debate the deficiencies that stay unresolved and make clear sure phrases of PSKY’s proposed merger settlement,” it mentioned.
Netflix’s waiver comes as Paramount continues to press its case on to shareholders, bypassing WBD’s board with a hostile tender supply. Paramount has been providing $30 per share, all-cash, for everything of Warner Bros. Discovery after dropping a bidding contest for WBD’s streaming and studio property to Netflix.
Paramount alerts it might increase its bid to $31 per share
Whereas Paramount has publicly insisted its $30 per share bid will not be its “greatest and remaining,” the corporate has stopped wanting formally elevating the headline worth, reported CNBC.
WBD mentioned on Tuesday {that a} senior Paramount consultant had privately indicated it will pay $31 per share if talks had been reopened.
The manoeuvre locations Paramount ready to strengthen its supply with out conceding that it had beforehand didn’t current phrases acceptable to WBD’s board. It additionally will increase strain on Netflix, whose present supply stands at $27.75 per share, all-cash, for WBD’s streaming and studio companies.
Zaslav says WBD is concentrated on “worth and certainty”
David Zaslav, WBD’s chief government, framed the renewed talks as an train in accountability to shareholders quite than a shift within the firm’s advice.
“All through all the course of, our sole focus has been on maximizing worth and certainty for WBD shareholders,” mentioned WBD CEO David Zaslav in a press release. “Each step of the best way, we’ve supplied PSKY with clear path on the deficiencies of their provides and alternatives to handle them. We’re participating with PSKY now to find out whether or not they can ship an actionable, binding proposal that gives superior worth and certainty for WBD shareholders by way of their greatest and remaining supply.”
WBD additionally emphasised that the waiver is restricted. After February 23, Netflix will retain its matching rights underneath the merger settlement — a contractual mechanism that might permit Netflix to reply with improved phrases if WBD decides Paramount’s supply is superior.
Ted Sarandos: Paramount has been “flooding the zone with confusion”
Netflix co-chief government Ted Sarandos mentioned the waiver was designed to eradicate uncertainty, arguing that Paramount’s public marketing campaign had distorted the method.
“Paramount had been making a ton of noise, flooding the zone with confusion for shareholders … together with floating all these hypothetical provides and speaking on to the shareholders and bypassing the Warner Bros. Discovery board,” Sarandos mentioned. “So we’ve given the chance to get these shareholders precisely what they deserve, which is full readability and certainty.”
Sarandos declined to debate how far Netflix would possibly go to boost its supply if Paramount returns with a stronger bid.
“I don’t need to get into the hypotheticals,” he mentioned. “Allow them to make a transfer, after which we’ll see the place the subsequent step takes us.”
Paramount says it is able to have interaction “in good religion”
Paramount responded by acknowledging WBD’s announcement and reaffirming its perception that its proposal is superior to the Netflix transaction.
“Though the Board’s actions are uncommon, Paramount is nonetheless ready to have interaction in good religion and constructive discussions,” Paramount mentioned.
Nevertheless, Paramount signalled that it will not pause its strain techniques. The corporate mentioned it will proceed with its tender supply and its intention to appoint administrators to WBD’s board on the annual assembly.
WBD calls March 20 particular shareholder assembly
Warner Bros. Discovery mentioned it will maintain a particular shareholder assembly on March 20, and reiterated that its board continues to unanimously advocate the Netflix deal over Paramount’s supply.
Netflix described the assembly date as a key marker for its transaction.
“Whereas we’re assured that our transaction gives superior worth and certainty, we acknowledge the continued distraction for WBD stockholders and the broader leisure trade attributable to PSKY’s antics,” Netflix mentioned. “Accordingly, we granted WBD a slender seven-day waiver of sure obligations underneath our merger settlement to permit them to have interaction with PSKY to completely and at last resolve this matter.”
Shares of Warner Bros. Discovery rose practically 3 per cent on Tuesday, whereas Paramount shares gained about 5 per cent.
Regulatory scrutiny hangs over each Netflix and Paramount proposals
Regardless of the escalating numbers, neither proposal provides a clear path. Each potential transactions are anticipated to face intense regulatory evaluation, and the query of which deal is extra viable could show as essential because the headline worth.
Trade insiders and lawmakers have raised issues {that a} Netflix-WBD mixture might deliver collectively two of essentially the most highly effective streaming providers, doubtlessly limiting shopper selection and contributing to cost will increase.
Netflix has argued that its deal would protect jobs and stabilise a media trade that has been battered by restructuring and layoffs.
Paramount, in the meantime, has pitched its supply as not solely financially superior but additionally extra prone to win authorities approval. But its bid carries its personal issues, together with antitrust issues round combining two main movie studios and expansive portfolios of pay tv channels.
Overseas funding turns into a flashpoint in Paramount’s bid
Paramount’s proposal is financed partially by sovereign wealth funds from Saudi Arabia, Abu Dhabi within the United Arab Emirates, and Qatar. Paramount has mentioned these traders would don’t have any governance rights, however Netflix has raised the prospect of heightened scrutiny.
Netflix mentioned it expects the construction to attract consideration from regulators, together with the Committee on Overseas Funding in the US.
It additionally warned that European authorities could intently study the position of Center Jap traders.
Given Europe’s aggressive antitrust enforcement file, the area might turn into decisive for both deal — even because the political posture of the US stays unsure.
President Donald Trump has mentioned he has not been concerned within the course of and doesn’t plan to be, although he has reportedly met with executives from each camps.
Sarandos rejected Paramount’s claims that it has a smoother regulatory route.
“PSKY doesn’t have a quicker regulatory path,” Sarandos instructed CNBC Tuesday. “I don’t know why the Ellisons would insinuate they’ve some inside monitor into the Division of Justice, however I can guarantee you they don’t. And when it comes to our regulatory (place) in Europe and all over the world, we’re recognized entities and trusted entities with all of the gamers in Europe.”