Paramount Skydance to Negotiate With WBD Over Deal

Paramount Skydance has signaled its readiness to enter negotiations with Warner Bros. Discovery (WBD) during a limited seven-day window, but stopped short of committing to raise its $30-per-share hostile takeover bid.

The company issued a statement Tuesday describing WBD's board actions as "unusual" while affirming it is "prepared to engage in good faith and constructive discussions." This comes after WBD, with a waiver from Netflix (its preferred merger partner), opened the brief negotiating period ending February 23, 2026, to allow Paramount to address remaining "deficiencies" in its proposal and submit a potential "best and final" offer.

The move revives talks that had stalled, as WBD previously rejected Paramount's all-cash offer to acquire the entire company—valuing it at around $108 billion—in favor of Netflix's $83 billion deal focused on WBD's streaming and studio assets (including HBO Max and franchises like Harry Potter). 

Paramount has pursued a hostile tender offer directly to shareholders and plans to continue advancing it, along with a proxy fight by nominating directors for WBD's board.

Notably, Paramount's statement did not indicate any willingness to increase its price from the current $30 per share. However, WBD had previously disclosed that a Paramount representative verbally indicated readiness to go to $31 per share or higher if formal engagement occurred. Paramount emphasized it views its proposal as superior and will push forward with its tender offer and opposition to the Netflix merger regardless of the talks' outcome.

This high-stakes media consolidation battle highlights ongoing pressures in the industry, with companies seeking scale amid streaming competition and shifting viewer habits. The seven-day clock adds urgency, as WBD remains committed to its Netflix agreement and has scheduled a shareholder vote on that deal for March 20, 2026.

Netflix co-CEO Ted Sarandos told CNBC’s Julia Boorstin on Tuesday the waiver was granted to give shareholders clarity.  “Paramount had been making a ton of noise, flooding the zone with confusion for shareholders ... including floating all these hypothetical offers and talking directly to the shareholders and bypassing the Warner Bros. Discovery board,” Sarandos said. “So we’ve given the opportunity to get those shareholders exactly what they deserve, which is complete clarity and certainty.”