A new twist in the corporate takeover saga has unfolded, with Paramount Skydance making a bold move to acquire Warner Bros. Discovery. This development has sparked a fresh round of negotiations, as the entertainment industry watches with bated breath.
Warner Bros. Discovery announced on Tuesday that it had received an updated proposal from Paramount, even as it progresses with its initial deal to sell its streaming and studio assets to Netflix. The company is also in the process of spinning off its traditional TV assets into a separate publicly traded entity.
In a statement, Warner Bros. Discovery revealed, "We are currently reviewing the revised proposal from PSKY in consultation with our advisors. Our shareholders will be updated once the Board completes its assessment. The Netflix merger agreement remains active, and the Board continues to support the transaction with Netflix. We advise our shareholders to refrain from taking any action regarding the amended PSKY tender offer at this stage."
The financial details of Paramount's latest bid remain undisclosed, with both companies maintaining confidentiality on this matter.
"For a transaction with WBD to proceed, the WBD Board must determine that our revised proposal meets the criteria of a 'Company Superior Proposal' under its merger agreement with Netflix," Paramount stated. "This would require the expiration of a four-business-day matching period, the termination of the Netflix merger agreement, and the execution of a definitive merger agreement between Paramount and WBD."
Paramount has been persistent in its pursuit of Warner Bros. Discovery, with the past seven days witnessing intense activity. The WBD board sought Netflix's approval to engage in discussions with Paramount to gain clarity on its 'best and final offer.' In a letter addressed to Paramount's board, WBD's CEO David Zaslav and board chairman Samuel Di Piazza Jr. requested Paramount Skydance to clarify its proposal, indicating an expectation of a share price higher than $31 per WBD share.
Netflix now has four days to match Paramount's new offer, or it may choose to withdraw from the bidding process. A source familiar with the situation emphasized that WBD is legally obligated to recommend its signed agreement with Netflix, valued at approximately $83 billion. Paramount has put forward a $108 billion offer for the entire WBD, including its cable channels. Netflix is in the process of acquiring Warner Bros. and HBO Max.
Ted Sarandos, co-CEO of Netflix, declined to comment on how the streamer would respond to Paramount's higher offer during a February 2026 interview with Variety. However, he did mention that Netflix has a history of being willing to walk away and let others overpay for assets.
Under the terms of Netflix's agreement with WBD, the streamer would acquire Warner Bros.'s studios and streaming businesses for $27.75 per share (in all cash, a change from its previous cash-and-stock offer). WBD shareholders would retain equity in Discovery Global, the proposed spin-off entity that will house CNN, TBS, and other linear networks, as well as Discovery+.
Larry Ellison, David's tech-billionaire father, and RedBird Capital Partners are backing Paramount's takeover offer. The company has secured debt financing from Bank of America, Citigroup, and Apollo Global Management. Additionally, Paramount's bid includes capital from the sovereign wealth funds of Saudi Arabia, Qatar, and Abu Dhabi.
This corporate battle is far from over, and the outcome could have significant implications for the future of the entertainment industry. Who will ultimately prevail in this high-stakes game of corporate chess? Stay tuned as the story unfolds, and feel free to share your thoughts and predictions in the comments below!
