Warner Bros Discovery Inc (NASDAQ:WBD, XETRA:J5A) announced that it will engage with Paramount Skydance Corp (NASDAQ:PSKY) regarding a potential takeover proposal after receiving a limited seven-day waiver from Netflix, even as the company’s board reaffirmed its support for the previously announced Netflix merger.
The company said Netflix granted the waiver to allow Warner Bros. Discovery to hold discussions with Paramount Skydance through February 23 to clarify outstanding issues and allow the bidder to submit what it describes as a “best and final” offer.
Warner Bros. Discovery has scheduled a special shareholder meeting for March 20, 2026, to vote on its agreed transaction with Netflix.
Warner Bros. Discovery currently has a binding agreement to sell its studios and streaming assets to Netflix for about $27.75 per share in cash, and the board continues to unanimously recommend that shareholders approve that deal.
Paramount Skydance has been pursuing a takeover of Warner Bros. Discovery and recently amended its tender offer. The company said a senior Paramount Skydance representative indicated it would be willing to pay $31 per share if discussions proceed and that the figure would not represent its best and final proposal.
Warner Bros. Discovery noted that this higher price and several other matters were not reflected in the latest merger agreement proposed by Paramount Skydance.
In a letter to Paramount Skydance, Warner Bros. Discovery said the revised offer addresses some earlier concerns but still contains “many unfavorable terms and conditions” that its board had previously rejected.
The company added that it welcomes the opportunity to engage during the limited window to determine whether Paramount Skydance can deliver an actionable, binding proposal that provides superior value and certainty for shareholders.
"Every step of the way, we have provided PSKY with clear direction on the deficiencies in their offers and opportunities to address them,” Warner Bros. Discovery CEO David Zaslav said in a statement. “We are engaging with PSKY now to determine whether they can deliver an actionable, binding proposal that provides superior value and certainty for WBD shareholders through their best and final offer."
Shares of Warner Bros. Discovery added 2.2% at about $28, Netflix stock was down 2% at $75, while Paramount Skydance stock added almost 7% at about $11 on Tuesday morning.