Warner Bros. Resumes Talks With Paramount Skydance Amid Netflix Merger Bid

New York: Warner Bros. Discovery said on Tuesday that it is resuming discussions with Paramount Skydance over the studio’s bid to acquire the entertainment giant, giving the rival interested parties a limited time to improve its offer as part of an ongoing battle for control of one of Hollywood’s most valuable content portfolios.

In regulatory filings and public disclosures, Warner Bros. confirmed it had granted Paramount a seven-day window — until February 23 — to present its “best and final” proposal following a waiver from Netflix that allows talks to proceed despite Warner’s existing merger agreement with Netflix.

Paramount’s previous hostile takeover bid, which valued Warner Bros. at more than $108 billion including debt, has been amended to include additional terms such as coverage of penalties Warner Bros. would owe Netflix if the existing deal were terminated. Reports indicate Paramount may increase its bid further, including raising its per-share offer to about $31, though no binding new terms have been filed yet.

Warner Bros. previously rejected Paramount’s earlier offers as it moved forward with Netflix's proposal — a planned acquisition of its studio and streaming businesses for roughly $82.7 billion in cash and stock — and has maintained that the Netflix deal offers greater certainty and shareholder value. Under the Netflix agreement, the rest of Warner Bros.’ cable assets are set to be spun off into a separate publicly traded entity.

The board’s willingness to reopen discussions with Paramount under the limited waiver reflects pressure from active investors and the appeal of potentially unlocking higher value for shareholders. Paramount’s campaign to win support from investors has also highlighted regulatory and strategic questions about the long-term ownership and operational direction of Warner Bros.’ iconic film and television library.

As the seven-day negotiation period unfolds, Warner Bros. will assess whether Paramount’s revised terms might constitute a superior proposal, with shareholders set to vote in March on the company’s planned merger with Netflix. Observers say renewed talks could reshape the dynamics of what has become one of the sector’s most closely watched corporate contests.