Warner Bros. Discovery announced that it would reopen discussions with Paramount Skydance under a seven‑day waiver granted by Netflix, allowing the two companies to negotiate until February 23. The move follows Paramount’s amended offer, which includes a $2.8 billion termination fee to Netflix and a quarterly ticking fee of $650 million for any delay beyond December 31, 2026.
Paramount’s bid values Warner Bros. Discovery at $108.4 billion, or $30 per share, compared with Netflix’s $82.7 billion valuation at $27.75 per share. While the board still recommends shareholders approve the Netflix transaction, the reopening signals that WBD is exploring a potentially higher offer that could reshape ownership and strategic direction.
WBD’s board chair David Zaslav said, "Every step of the way, we have provided Paramount Skydance with clear direction on the deficiencies in their offers and opportunities to address them. We are engaging with Paramount 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." Netflix’s spokesperson added, "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. Accordingly, we granted WBD a narrow seven‑day waiver of certain obligations under our merger agreement to allow them to engage with PSKY to fully and finally resolve this matter."
The shareholder vote on the Netflix transaction is scheduled for March 20. WBD’s Q3 2025 results showed a net loss of $11.31 billion on revenue of $39.32 billion, underscoring the urgency of a favorable deal. Paramount Skydance remains unprofitable with declining earnings, while Netflix reported 2025 revenue of $45.183 billion and a net margin of 24.3 percent.
The strategic difference between the two offers is significant: Netflix would acquire only WBD’s streaming and studios division, whereas Paramount seeks the entire company, including linear networks such as CNN. Paramount also believes its bid is more likely to receive antitrust approval, adding a regulatory dimension to the competition.
Investors have reacted positively to the news of reopened talks, reflecting expectations that a higher bid could emerge and potentially increase shareholder value. The market reaction is driven by the possibility of a competitive bidding war and the potential for a higher valuation for WBD.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.