Warner Bros. Discovery Opens Talks With Paramount While Backing Netflix Merger

Warner Bros. Discovery has begun a limited seven-day discussion period with Paramount Skydance that runs through February 23. This move allows the company to gain more clarity for its shareholders and gives Paramount a chance to present its best and final offer. The discussions come after Paramount submitted an amended proposal at $30 per share in cash on February 10. Warner Bros. Discovery previously rejected earlier versions of that offer in December. Netflix has granted a narrow waiver under the existing merger agreement to permit these brief talks.

The board of Warner Bros. Discovery continues to unanimously support its merger with Netflix. That deal values the studio and streaming assets at $27.75 per share and includes a plan to spin off the Discovery Global linear networks into a separate public company. A special shareholder meeting is set for March 20 to vote on the Netflix transaction. Proxy materials were mailed out on February 17. Netflix co-CEOs Ted Sarandos and Greg Peters expressed confidence in their agreement while acknowledging the distraction caused by Paramount’s efforts.

Paramount has pursued Warner Bros. Discovery aggressively with a series of unsolicited bids since last fall. A senior representative from Paramount indicated on February 11 that the company would be willing to go above $30 per share, potentially to $31 as a starting point, if meaningful talks began. Warner Bros. Discovery has shared draft transaction agreements to highlight key concerns such as refinancing costs, material adverse effect clauses tied to performance, equity cures for debt issues, and interim operating restrictions. The company stresses the need for a binding proposal that delivers superior value and greater certainty compared to the Netflix arrangement.

David Zaslav, CEO of Warner Bros. Discovery, emphasized that maximizing shareholder value and certainty has guided every decision throughout the process. He noted that the team has consistently pointed out shortcomings in Paramount’s proposals and provided clear paths to improvement. Board chair Samuel Di Piazza reinforced the view that the Netflix merger stands out for its strong value, clear regulatory path, and solid protections against risks. This combination promises more choices for consumers, job preservation, expanded U.S. production, and long-term industry growth.

Paramount has countered by claiming Warner Bros. Discovery’s process lacks fairness and that it has met every raised objection. The talks remain exploratory at this stage with no deal guaranteed. Netflix has criticized Paramount’s approach as disruptive antics and hopes the short window resolves the uncertainty once and for all. The situation highlights the intense competition in media consolidation amid streaming pressures and linear TV challenges.

What do you think about this latest twist in the Warner Bros. Discovery bidding saga—share your thoughts in the comments.