warner bros discovery On Tuesday, it announced it would resume negotiations on a deal with the United States. paramount skydance with a 7-day exemption from Netflix The purpose is to find “flaws” in Paramount’s proposal to acquire all of WBD.
The traditional media company has a pending deal with Netflix for its streaming and studio business. After losing to Netflix in a bidding war, Paramount launched a hostile tender offer to WBD shareholders for $30 per share.
“Under the terms of WBD’s merger agreement with Netflix, Netflix has granted WBD permission to participate in discussions with Paramount Skydance (“PSKY”) (NASDAQ:PSKY) for seven days, ending February 23, 2026, to provide clarity to WBD stockholders and provide PSKY with the ability to make its best and final offer, Warner Bros. Discovery said in a release.
“During this period, WBD will work with PSKY to discuss outstanding deficiencies and clarify certain terms of PSKY’s proposed merger agreement.”
Paramount management has repeatedly stated that the $30-per-share, all-cash offer is not the “best and final.” Last week, the company softened its offer with additional “enhancements” but failed to increase per-share value.
Warner Bros. Discovery announced Tuesday that senior Paramount representatives have notified WBD board members that the company will pay $31 per share if deal negotiations resume.
According to WBD, even after the limited waiver period, Netflix will retain matching rights as provided in the merger agreement.
“Throughout the process, we have been focused solely on maximizing value and certainty for WBD shareholders,” WBD CEO David Zaslav said in a statement. “At every step, we have provided PSKY with clear guidance on the flaws in the proposal and opportunities to address them. We are currently in discussions with PSKY to determine whether PSKY can provide a viable and binding proposal that will provide superior value and certainty to WBD shareholders through the best and final proposal.”
WBD also announced Tuesday that it will hold a special general meeting of shareholders on March 20, saying its board continues to unanimously recommend a deal with Netflix over Paramount’s offer.
Netflix said in a statement that the shareholder meeting date marks an “important milestone in our transaction with WBD.”
“While we believe our transaction provides superior value and certainty, we recognize that PSKY’s antics continue to disrupt WBD shareholders and the broader entertainment industry,” Netflix said in a statement. “Accordingly, we have granted WBD a limited seven-day waiver of certain obligations under the Merger Agreement to allow us to work with PSKY to fully and conclusively resolve this matter.”
Shares of Paramount and Warner Bros. Discovery each rose about 3% in premarket trading Tuesday.
