Warner Bros. Discovery has given Paramount Skydance a seven-day window until February 23, 2026, to submit a superior merger proposal, while advancing its $72 billion all-cash deal with Netflix. This follows Netflix's January shift to all-cash terms ($27.75 per share for streaming and studio assets) to counter Paramount's hostile bid, now at $31 per share for the full company.
Warner Bros. Discovery (WBD) announced on February 17, 2026, a limited negotiation period with Paramount Skydance, granted via a seven-day waiver from Netflix ending February 23. The board is proceeding with the Netflix merger, scheduling a shareholder vote for March 20 on the $27.75 per share all-cash offer—covering HBO Max and Warner Bros. studios for $72 billion total—with the cable TV assets to spin off as Discovery Global.
In a letter to Paramount's board, WBD Chairman Samuel Di Piazza Jr. and CEO David Zaslav invited a 'best and final' proposal but emphasized no determination yet that it would surpass the Netflix deal. They urged adoption of Netflix's binding terms, which prevent unilateral changes and protect ongoing operations.
Paramount's current $31 per share bid for the entire company exceeds Netflix's per-share offer but targets different assets. A Paramount representative hinted at potential increases. WBD contrasted Netflix's financial strength ($400 billion market cap, strong credit, positive cash flow) with Paramount's ($14 billion market cap, junk rating, negative cash flow).
Netflix co-CEO Ted Sarandos testified before a Senate committee, defending the merger's complementary HBO Max integration and consumer benefits like one-click cancellations for better value.
This escalation builds on January's all-cash pivot by Netflix, amid Paramount's prior lawsuit (dismissed for expedition) challenging WBD disclosures.
