Warner Bros. Discovery takeover battle: Netflix vs Paramount Skydance

TOI GLOBAL DESK | TOI GLOBAL | Feb 17, 2026, 19:50 IST

Netflix grants Warner Bros a 7 day waiver to reopen takeover talks with Paramount

Warner Bros Discovery is reopening talks with Paramount Skydance after Netflix granted a seven-day waiver, even as it moves forward with a shareholder vote on its Netflix merger. Paramount’s $108.4 billion bid, backed by equity guarantees from Larry Ellison, challenges Netflix’s $82.7 billion offer for studio and streaming assets. The coming week is critical for shareholders and the board.

Netflix gives waiver

Netflix has given Warner Bros Discovery a seven-day waiver to discuss Paramount Skydance’s buyout proposal. This allows the studio to negotiate possible changes to Paramount’s bid until February 23. Paramount initially offered $30 per share in a hostile bid, later hinting at $31 per share. Warner Bros has repeatedly rejected Paramount’s offers in the past but decided to consider talks now. The company remains committed to the Netflix merger, which values studio and streaming assets at $27.75 per share. The merger will happen after Warner Bros spins off Discovery Global cable operations, including CNN, TLC, Food Network, and HGTV, into a separate publicly traded company.

Paramount's offer

Warner Bros’ board says it has not yet decided if Paramount’s offer is better than the Netflix deal. Paramount has offered personal guarantees from Oracle founder Larry Ellison, father of Paramount CEO David Ellison, to secure $40 billion in equity for the purchase. Paramount is also seeking to nominate new directors to Warner Bros’ board. Pentwater Capital Management CEO Matt Halbower is a possible nominee. Pentwater holds about 50 million Warner Bros shares and supports Paramount’s bid. Activist investor Ancora Holdings, which has a large stake, has criticized Warner Bros’ handling of Paramount’s offers. Shareholders will vote on the Netflix merger on March 20. The board believes Netflix provides more certainty and better value, but Paramount’s enhanced offer and promises are creating pressure on Warner Bros.

Impact

The outcome of this battle will affect the media and streaming industries globally. Paramount has proposed extra cash for shareholders if the deal delays and agreed to cover a $2.8 billion breakup fee Warner Bros would owe Netflix. Netflix says its deal is ready and reliable, offering certainty for investors. Analysts say the next week is crucial. Warner Bros’ decision will determine whether Netflix completes the merger or Paramount Skydance can convince shareholders and the board to accept its higher bid.