Warner Bros. Discovery (WBD) is reportedly considering reopening discussions with Paramount Skydance regarding the studio’s revised offer to acquire the company, following WBD’s $83 billion sale agreement with Netflix in December.
Paramount Skydance’s latest proposal, the ninth since last year, includes a premium “ticking fee” of approximately $650 million per quarter for WBD shareholders if the deal is not completed by 31 December 2026. The revised offer was presented to WBD and investors on 10 February. Bloomberg News first reported the board’s inclination to re-engage with Paramount Skydance on Sunday.
Despite this, WBD’s board has publicly dismissed Paramount’s overtures as insufficient to alter the existing agreement with Netflix. The sale of the studio and HBO has drawn close attention from investors, media observers, and corporate governance watchdogs. Analysts expect the process to trigger shareholder lawsuits, as is common in transactions of this magnitude. Renewed talks with Paramount Skydance could strengthen the board’s position that it fulfilled its fiduciary duty by thoroughly reviewing all legitimate offers.
WBD is expected to address the Paramount Skydance bid and announce the date for its Q4 2025 earnings report this week following the Presidents’ Day holiday. Investors are also awaiting the schedule for a special shareholder vote to approve the Netflix transaction.
It remains uncertain whether Paramount’s revised offer will impact WBD’s voting timeline. Under the December agreement, Netflix has the right to match any superior bid before completing the acquisition.
Sources suggest WBD’s board may be seeking confirmation from Paramount Skydance that its offer represents the best and final terms. This would allow shareholders to make an informed choice and enable WBD to require Netflix to match any improved terms. Paramount Skydance is aiming to acquire the entire WBD portfolio, including its cable channels such as CNN, TNT, Discovery, HGTV, and Food Network, while Netflix’s deal covers Warner Bros. and HBO Max.
The Netflix transaction is expected to face rigorous regulatory review in Washington due to the company’s market influence in streaming, alongside heightened political scrutiny of the media sector. WBD may also encounter further public relations challenges from small but vocal investors questioning the Netflix agreement, as seen recently with Ancora Capital.
