Warner Bros. Discovery is considering reopening merger talks with Paramount Skydance, according to reports from Bloomberg, The New York Times, Variety, and other sources.
The company's board is weighing whether to re-engage after Paramount submitted an amended, sweetened bid last week. This comes despite Warner Bros. Discovery's existing agreement to sell its studios and streaming business (including Warner Bros. Pictures, HBO, and Max) to Netflix.
Key details on the deals:
- In December 2025, Warner Bros. Discovery agreed to a deal with Netflix valued at about $83 billion enterprise value (around $72 billion equity), with the latest amendment making it all-cash at $27.75 per share (subject to adjustments). This involves spinning off WBD's cable networks as "Discovery Global" separately.
- Paramount Skydance has pursued a full acquisition of Warner Bros. Discovery for $30 per share all-cash, valuing it at around $108 billion including debt. Its latest offer (the ninth in the saga) did not raise the per-share price but added sweeteners: covering WBD's $2.8 billion termination fee to Netflix if the Netflix deal ends, plus a "ticking fee" of about 25 cents per share quarterly (roughly $650 million per quarter) starting in 2027 until closing, signaling confidence in quick regulatory approval.
The board has until around February 25, 2026, to respond to Paramount's proposal.
If WBD reopens talks, it must notify Netflix, which could then match or improve its offer under the agreement's terms. WBD has previously rejected Paramount's approaches as insufficient, but the latest changes have sparked fresh board discussions.
The high-stakes media consolidation battle reflects ongoing industry pressures from streaming competition, declining cable, and the need for scale in Hollywood. The outcome could reshape ownership of major studios, streaming platforms, and content libraries. No final decision has been announced, and WBD may still stick with Netflix.