Warner Bros. Discovery $WBD ( ▲ 0.14% ) will reopen negotiations with Paramount $PSKY ( ▲ 2.68% ) after receiving a seven-day waiver from Netflix $NFLX, allowing it to hear what Paramount calls its “best and final” offer. The waiver runs through February 23, giving Paramount a narrow window to present a deal that could rival the existing agreement with Netflix.
Despite the renewed talks, the WBD board says it still unanimously supports the Netflix merger. Importantly, Netflix retains the right to match or exceed any competing proposal that emerges during this period.
A bidding war may be taking shape
Paramount has indicated it could offer about $31 per share, slightly above its previous $30-per-share proposal and still not labeled as its final bid. The offer also includes provisions addressing the $2.8 billion breakup fee tied to the Netflix agreement, removing one of the biggest barriers to switching partners.
Investors appear to believe the competition could drive a better outcome. Shares of both Warner Bros. Discovery and Netflix rose after the announcement, suggesting markets see flexibility on both sides.
Decision deadline approaches
Warner Bros. shareholders are scheduled to vote on the Netflix merger on March 20, adding urgency to the negotiations. Prediction markets now show a tight race between Netflix and Paramount as potential acquirers, reflecting growing uncertainty about the final outcome.
For Warner Bros., the next week could determine not just who buys the company, but how the balance of power in the streaming industry evolves. With multiple suitors and billions at stake, the deal battle is entering its most decisive phase.