Netflix Gives Warner Bros. Discovery a 7-Day Window for Paramount’s Bid
In an unexpected twist in the media merger narrative, Netflix has given Warner Bros. Discovery a seven-day waiver on February 17, 2026. This allows the media titan to rekindle takeover negotiations with Paramount Skydance, while keeping its existing merger agreement with Netflix intact.
Warner Bros. Discovery announced its intention to utilize the waiver period, which ends on February 23, 2026, to solicit Paramount’s “best and final offer”. This move aims to address the unresolved deficiencies in Paramount’s hostile bid. This decision was made after Warner Bros. revealed that a Paramount representative suggested the company might raise its offer to $31 per share, a leap from the current $30 per share ($108 billion enterprise value including debt), contingent on formal engagement.
The intricate battle hinges on two rival visions: Netflix’s $27.75 per share all-cash offer for Warner’s studio and streaming business (HBO, HBO Max, Warner Bros. film and TV studios) valued at approximately $83 billion with debt, versus Paramount’s hostile $77.9 billion offer for the entire Warner Bros. Discovery company, including cable networks like CNN and Discovery. A special shareholder meeting has been scheduled by Warner Bros. for March 20, 2026, to vote on the Netflix merger, with the board currently advocating for the approval of that deal.
Netflix co-CEO Ted Sarandos recognized Paramount’s assertive tactics, stating that the streaming giant granted the waiver to provide “complete clarity and certainty” for shareholders. Both proposed deals are under regulatory scrutiny, with questions about market consolidation and, in Paramount’s case, concerns about foreign funding from Saudi Arabia, Qatar, and Abu Dhabi raising national security considerations.
Source: CNBC