Seven-Day Window Granted by Netflix
Warner Bros. Discovery said Tuesday it will reopen negotiations with Paramount Skydance under a limited seven-day waiver approved by Netflix. The temporary window allows discussions aimed at addressing what WBD described as unresolved “deficiencies” in Paramount’s offer to acquire the entire company.
WBD currently has a pending agreement to sell its studio and streaming assets to Netflix for $27.75 per share in cash. After losing out in a prior bidding round, Paramount launched a direct hostile tender offer to WBD shareholders at $30 per share.
According to WBD, a senior Paramount representative recently indicated the company would be prepared to offer $31 per share if formal talks were revived. Paramount has repeatedly said its existing proposal is not its “best and final” offer.
Competing Strategies and Shareholder Pressure
WBD CEO David Zaslav said the board’s priority remains maximizing value and certainty for shareholders. During the waiver period, the company will evaluate whether Paramount can present a binding and actionable proposal that surpasses the Netflix agreement.
Once the seven-day discussion period concludes, Netflix retains contractual matching rights. Co-CEO Ted Sarandos said the waiver was granted to eliminate uncertainty and clarify the bidding landscape for investors.
Paramount, for its part, said it remains ready to engage in good-faith discussions while continuing with its tender offer and plans to nominate directors at WBD’s upcoming annual meeting.
Regulatory Risks in Focus
Both proposed transactions face scrutiny from regulators. Industry observers have questioned whether a combination of Netflix and WBD’s streaming and studio assets would reduce competition in the global media market.
Paramount’s bid also presents regulatory considerations. Its financing includes capital from sovereign wealth funds in Saudi Arabia, Abu Dhabi and Qatar. Though Paramount has said those investors would not hold governance rights, Netflix argues that foreign funding could invite review by the Committee on Foreign Investment in the United States and European regulators.
Sarandos rejected suggestions that Paramount has a clearer path to regulatory approval, emphasizing Netflix’s established presence and relationships in major global markets.
Market Reaction and Next Steps
Shares of Warner Bros. Discovery rose nearly 3% following the announcement, while Paramount Skydance shares gained about 5%.
WBD also confirmed that a special shareholder meeting is scheduled for March 20, where its board will continue recommending approval of the Netflix agreement unless a superior alternative emerges.
