Warner Bros. Discovery has rejected a revised hostile takeover bid from Paramount Skydance but says it remains open to reviewing a final, improved offer.
In a statement released Tuesday, Warner Bros said it secured a seven-day waiver from Netflix allowing discussions with Paramount Skydance through February 23, 2026.
The waiver gives Paramount Skydance time to resolve outstanding issues and submit a binding “best and final” proposal. However, Netflix retains matching rights under its existing merger agreement with Warner Bros.
Despite reopening talks, Warner Bros’ board reaffirmed its unanimous support for the Netflix merger, urging shareholders to vote in favour of the transaction and reject Paramount Skydance’s offer.
The board cited:
- Greater value certainty
- Clearer regulatory pathway
- Lower financing risk
- Stronger downside protection for investors
David Zaslav, Warner Bros President and CEO, said the company’s priority remains maximising value and certainty for shareholders, adding that Paramount Skydance has been given clear guidance on deficiencies in its prior proposals.
A senior Paramount Skydance representative has reportedly indicated willingness to raise the offer to $31 per share if formal negotiations proceed.
Samuel Di Piazza Jr., Board Chair described the Netflix merger as strategically stronger, saying it would support long-term content investment, protect jobs, and expand production capacity.
The standoff follows months of bidding tension.
- September 2025: Paramount Skydance first approached Warner Bros during a strategic review.
- December 2025: Warner Bros announced a merger agreement with Netflix.
- Shortly after, Paramount Skydance launched a hostile tender offer.
Earlier Paramount bids were criticised for high financing risk and complex debt structures. While the proposal has since been revised, Warner Bros says key concerns remain unresolved.
Under the Netflix agreement, Warner Bros plans to separate its Streaming and Studios businesses from its Global Linear Networks operations before closing.
- Shareholders of record as of February 4, 2026 will vote.
- The shareholder meeting is scheduled for March 20, 2026.
Warner Bros cautioned there is no guarantee a definitive rival offer will emerge from Paramount Skydance.
For now, the board remains firm: shareholders are advised to back the Netflix merger, unless a superior final bid materialises before the February 23 deadline.
