Warner Bros. Discovery (WBD) has announced it will resume discussions with Paramount Skydance following a limited waiver granted by Netflix, allowing WBD a seven-day period to evaluate “deficiencies” in Paramount’s acquisition offer. This comes amid a competitive landscape for media companies, as WBD currently has an arrangement with Netflix for its streaming and studio operations.
Paramount Skydance initiated a hostile tender offer directly aimed at WBD shareholders, proposing a cash bid of $30 per share after losing in a bidding contest to Netflix. The statement from WBD highlighted that Netflix’s waiver, under the terms of their merger agreement, allows for these discussions to clarify unresolved issues and enable Paramount to submit its final offer before the waiver expires on February 23, 2026.
Despite boosting the attractiveness of their proposal through various enhancements, Paramount has not increased the per-share cash offer. Recently, a senior official from Paramount suggested they might raise their bid to $31 per share should negotiations recommence.
In a clear message to shareholders, WBD CEO David Zaslav emphasized the company’s commitment to maximizing value and certainty for its shareholders throughout this process. “We have consistently guided PSKY on the shortcomings of their offers and areas where they could enhance their proposal,” he stated, reinforcing the focus on securing a more compelling offer from Paramount.
Additionally, WBD revealed plans for a special shareholder meeting slated for March 20, where the board will continue to endorse the deal with Netflix over Paramount’s proposal. In response, Netflix characterized the upcoming meeting as a crucial milestone for its transaction with WBD. The streaming giant expressed confidence in its offer’s superiority while acknowledging the ongoing disruptions initiated by Paramount’s actions.
In premarket trading, shares of both Paramount and Warner Bros. Discovery experienced a modest increase, suggesting investor interest amid this unfolding situation. As negotiations resume, all eyes will be on whether Paramount can deliver a revised offer that aligns with WBD’s expectations and shareholder interests.
