Warner Bros Discovery has rejected a revised hostile takeover bid from Paramount Skydance, however signalled it stays open to contemplating a closing improved provide.
In a press release launched on Tuesday, Warner Bros Discovery mentioned it had acquired a seven-day waiver from Netflix, permitting it to carry talks with Paramount Skydance till February 23, 2026.
The waiver permits Warner Bros to deal with unresolved points in Paramount Skydance’s amended proposal and supplies the rival bidder a possibility to submit a binding closing provide.
Netflix retains matching rights underneath the present merger settlement.
What they’re saying
Regardless of opening the door to discussions, the Warner Bros board harassed that it stays totally dedicated to the Netflix transaction. The board unanimously recommends that shareholders vote in favour of the Netflix merger and reject the Paramount Skydance provide, citing worth certainty, regulatory readability, and draw back safety for traders.
In response to Warner Bros, a senior consultant of Paramount Skydance individually knowledgeable a board member that the group could be prepared to pay $31 per share if discussions had been authorised.
- “All through your complete course of, our sole focus has been on maximizing worth and certainty for WBD shareholders,” mentioned David Zaslav, President and Chief Govt Officer of Warner Bros. Discovery.
- “Each step of the way in which, we’ve got offered PSKY with clear course on the deficiencies of their presents and alternatives to deal with them. We’re partaking 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 closing provide.”
Board Chair Samuel Di Piazza Jr. added that the Netflix merger stays the popular choice, highlighting its sturdy regulatory path, restricted financing threat, and strategic advantages for the long-term development of the enterprise. He mentioned the transaction would help larger funding in content material, shield jobs, and broaden manufacturing capability throughout the leisure trade.
Backstory
The present standoff is the newest chapter in a months-long contest for management of Warner Bros’ prized studios and content material library.
Paramount Skydance had approached Warner Bros as early as September 2025 throughout a strategic overview course of, however noticed a number of presents rebuffed. In December 2025, Warner Bros introduced a merger settlement with Netflix, triggering a hostile response from Paramount Skydance, which launched a young provide shortly after.
Earlier bids from Paramount Skydance had been criticised by the Warner Bros board for carrying excessive financing threat, advanced debt constructions, and weaker protections for shareholders. Whereas Paramount Skydance has since amended its proposal, Warner Bros maintains that most of the similar deficiencies stay, regardless of casual indications {that a} increased per-share worth may very well be tabled.
What it’s best to know
Underneath the proposed Netflix deal, Warner Bros plans to separate its Streaming and Studios companies from its World Linear Networks operations forward of closing. Shareholders of file as of February 4, 2026, will probably be eligible to vote on the March 20 assembly, with proxy supplies already being distributed.
Whereas Warner Bros acknowledged that discussions with Paramount Skydance may make clear different worth propositions, it cautioned that there isn’t any assurance a definitive rival transaction will emerge.
For now, the corporate stays resolute in its advice that shareholders again the Netflix merger.
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