Warner Bros Discovery has rejected a revised hostile takeover bid from Paramount Skydance, but signalled it remains open to considering a final improved offer.
In a statement released on Tuesday, Warner Bros Discovery said it had received a seven-day waiver from Netflix, allowing it to hold talks with Paramount Skydance until February 23, 2026.
The waiver permits Warner Bros to address unresolved issues in Paramount Skydance’s amended proposal and provides the rival bidder an opportunity to submit a binding final offer.
Netflix retains matching rights under the existing merger agreement.
What they are saying
Despite opening the door to discussions, the Warner Bros board stressed that it remains fully committed to the Netflix transaction. The board unanimously recommends that shareholders vote in favour of the Netflix merger and reject the Paramount Skydance offer, citing value certainty, regulatory clarity, and downside protection for investors.
According to Warner Bros, a senior representative of Paramount Skydance separately informed a board member that the group would be willing to pay $31 per share if discussions were authorised.
- “Throughout the entire process, our sole focus has been on maximizing value and certainty for WBD shareholders,” said David Zaslav, President and Chief Executive Officer of Warner Bros. Discovery.
- “Every step of the way, we have provided PSKY with clear direction on the deficiencies in their offers and opportunities to address them. We are engaging with PSKY now to determine whether they can deliver an actionable, binding proposal that provides superior value and certainty for WBD shareholders through their best and final offer.”
Board Chair Samuel Di Piazza Jr. added that the Netflix merger remains the preferred option, highlighting its strong regulatory path, limited financing risk, and strategic benefits for the long-term growth of the business. He said the transaction would support greater investment in content, protect jobs, and expand production capacity across the entertainment industry.
Backstory
The current standoff is the latest chapter in a months-long contest for control of Warner Bros’ prized studios and content library.
Paramount Skydance had approached Warner Bros as early as September 2025 during a strategic review process, but saw multiple offers rebuffed. In December 2025, Warner Bros announced a merger agreement with Netflix, triggering a hostile response from Paramount Skydance, which launched a tender offer shortly after.
Earlier bids from Paramount Skydance were criticised by the Warner Bros board for carrying high financing risk, complex debt structures, and weaker protections for shareholders. While Paramount Skydance has since amended its proposal, Warner Bros maintains that many of the same deficiencies remain, despite informal indications that a higher per-share price could be tabled.
What you should know
Under the proposed Netflix deal, Warner Bros plans to separate its Streaming and Studios businesses from its Global Linear Networks operations ahead of closing. Shareholders of record as of February 4, 2026, will be eligible to vote at the March 20 meeting, with proxy materials already being distributed.
While Warner Bros acknowledged that discussions with Paramount Skydance could clarify alternative value propositions, it cautioned that there is no assurance a definitive rival transaction will emerge.
For now, the company remains resolute in its recommendation that shareholders back the Netflix merger.
