Netflix gives Warner Bros. Discovery 7-day waiver to resume merger talks with Paramount
'During this period, WBD will engage with (Paramount Skydance) to discuss the deficiencies that remain unresolved and clarify certain terms of (Paramount) proposed merger agreement,' WBD says
ISTANBUL
Warner Bros. Discovery (WBD) announced Tuesday it will reopen talks with Paramount Skydance under a seven-day waiver from Netflix to discuss “deficiencies” in Paramount’s offer to acquire WBD.
"Netflix has provided WBD a limited waiver under the terms of WBD's merger agreement with Netflix, permitting WBD to engage in discussions with Paramount Skydance ("PSKY") (NASDAQ: PSKY) for a seven-day period ending on February 23, 2026 to seek clarity for WBD stockholders and provide PSKY the ability to make its best and final offer," WBD said in a statement.
“During this period, WBD will engage with PSKY to discuss the deficiencies that remain unresolved and clarify certain terms of PSKY’s proposed merger agreement,” it said.
A deal between the US media and entertainment company and studio divisions of the legacy media company and Netflix is still pending. After losing to Netflix in a bidding war, Paramount made a hostile tender offer directly to WBD stockholders at $30 per share.
The leadership of Paramount has stated multiple times that its all-cash offer of $30 per share is not its "best and final." The business added "enhancements" to its offer last week, although it refrained from increasing the value per share.
A senior Paramount representative told a WBD board member that it would offer $31 per share if deal negotiations were to resume, Warner Bros. said Tuesday.
Netflix will keep the matching rights granted by the merger agreement following the brief waiver period, according to WBD,
Additionally, WBD said Tuesday that its board still unanimously supports the Netflix acquisition over Paramount's bid and a special meeting of shareholders will take place March 20.
The date of the shareholder meeting was an "important milestone for our transaction with WBD," according to a statement from Netflix.
“While we are confident that our transaction provides superior value and certainty, we recognize the ongoing distraction for WBD stockholders and the broader entertainment industry caused by PSKY’s antics,” said Netflix. “Accordingly, we granted WBD a narrow seven-day waiver of certain obligations under our merger agreement to allow them to engage with PSKY to fully and finally resolve this matter.”
