David Ellison's Paramount has increased its offer for Warner Bros. Discovery beyond the previous $30 per share, aiming to disrupt Netflix's pending acquisition. The revised bid comes as a seven-day negotiating window expires on February 23, 2026. Netflix retains the right to match any improved proposal.
The ongoing merger battle for Warner Bros. Discovery (WBD) intensified on February 23, 2026, as Paramount, led by David Ellison's Skydance, submitted a sweetened bid exceeding its prior $30 per share offer. Deadline confirmed the increase, though the exact amount remains undisclosed, while Variety reported insiders expect it to reach $32 per share. This move seeks to outmaneuver Netflix, which signed an $82.7 billion agreement with WBD on February 17 for $27.75 per share in cash for the Warner studios and streaming assets, plus WBD shareholders receiving stock in the spun-off Discovery Global cable company.
The seven-day negotiation window, authorized by WBD's board with Netflix's permission, ends at 11:59 p.m. ET on February 23. Paramount's proposal addresses WBD's concerns over financing guarantees for what would be the largest leveraged buyout in history. An SEC filing indicated Paramount's willingness to go to $31 per share or higher, and Wall Street analysts anticipate a push to $32 or more to pressure Netflix. MoffettNathanson analyst Robert Fishman noted that Netflix might match up to $30 per share but could struggle beyond that due to debt and revenue factors, potentially walking away if Paramount bids $34 per share.
Netflix co-CEO Ted Sarandos emphasized the streamer's disciplined approach in a February 20 Variety interview: "We have a rich history of being willing to walk away and let someone else overpay for things." If WBD accepts Paramount's offer, it would owe Netflix a $2.8 billion breakup fee, which Paramount has agreed to cover. Netflix has four days post-submission to match or exit.
The deal faces U.S. Department of Justice antitrust scrutiny, with inquiries to studios about potential monopoly risks in entertainment programming. Netflix's chief legal counsel David Hyman stated, "Netflix operates in an extremely competitive market. Any claim that it is a monopolist... is unfounded." Paramount recently cleared a Hart-Scott-Rodino waiting period milestone.
Separately, former President Donald Trump demanded on social media that Netflix fire board member Susan Rice, citing political concerns. Sarandos responded in a BBC Radio 4 interview: "This is a business deal. It’s not a political deal." WBD's shareholder vote on the Netflix deal is set for March 20, with Paramount's hostile tender offer deadline extended to March 3. Paramount and WBD report earnings on February 25 and 26, respectively.
