Warner Bros Discovery has rejected a revised hostile takeover bid from Paramount Skydance, however signalled it stays open to contemplating a last improved supply.
In an announcement launched on Tuesday, Warner Bros Discovery mentioned it had acquired a seven-day waiver from Netflix, permitting it to carry talks with Paramount Skydance till February 23, 2026.
The waiver permits Warner Bros to handle unresolved points in Paramount Skydance’s amended proposal and gives the rival bidder a chance to submit a binding last supply.
Netflix retains matching rights underneath the prevailing merger settlement.
Regardless of opening the door to discussions, the Warner Bros board burdened that it stays absolutely dedicated to the Netflix transaction. The board unanimously recommends that shareholders vote in favour of the Netflix merger and reject the Paramount Skydance supply, citing worth certainty, regulatory readability, and draw back safety for buyers.
In keeping with Warner Bros, a senior consultant of Paramount Skydance individually knowledgeable a board member that the group could be prepared to pay $31 per share if discussions have been authorised.
Board Chair Samuel Di Piazza Jr. added that the Netflix merger stays the popular possibility, highlighting its sturdy regulatory path, restricted financing threat, and strategic advantages for the long-term progress of the enterprise. He mentioned the transaction would assist better funding in content material, defend jobs, and broaden manufacturing capability throughout the leisure business.
The present standoff is the newest chapter in a months-long contest for management of Warner Bros’ prized studios and content material library.
Paramount Skydance had approached Warner Bros as early as September 2025 throughout a strategic evaluate course of, however noticed a number of provides rebuffed. In December 2025, Warner Bros introduced a merger settlement with Netflix, triggering a hostile response from Paramount Skydance, which launched a young supply shortly after.
Earlier bids from Paramount Skydance have been criticised by the Warner Bros board for carrying excessive financing threat, advanced debt constructions, and weaker protections for shareholders. Whereas Paramount Skydance has since amended its proposal, Warner Bros maintains that most of the identical deficiencies stay, regardless of casual indications {that a} larger per-share value may very well be tabled.
Below the proposed Netflix deal, Warner Bros plans to separate its Streaming and Studios companies from its International Linear Networks operations forward of closing. Shareholders of report as of February 4, 2026, will likely be eligible to vote on the March 20 assembly, with proxy supplies already being distributed.
Whereas Warner Bros acknowledged that discussions with Paramount Skydance might make clear various worth propositions, it cautioned that there isn’t a assurance a definitive rival transaction will emerge.
For now, the corporate stays resolute in its suggestion that shareholders again the Netflix merger.
