Warner Bros. gives Paramount one more week to beat Netflix merger offer

Warner Bros. Discovery has granted Paramount an additional week to present its most competitive offer, potentially reshaping the landscape of its merger with Netflix. While Warner Bros. maintains its commitment to Netflix, a special meeting has been arranged for March 20, where shareholders are encouraged to endorse the Netflix merger. However, the company has initiated discussions with Paramount, despite previously deeming all past proposals inadequate. A statement from Warner Bros. clarified that Netflix has provided a limited waiver within the terms of their merger agreement, allowing Warner Bros. to negotiate with Paramount Skydance for a seven-day window ending on February 23, 2026. This period aims to clarify options for Warner Bros. stockholders and afford Paramount the chance to submit a conclusive offer. The merger agreement with Netflix includes a provision that grants Netflix the opportunity to match any offer from Paramount. In a letter addressed to Paramount's board, Warner Bros. Discovery's Chairman Samuel Di Piazza Jr. and CEO David Zaslav requested the best and final proposal from Paramount. The letter emphasized that while the board has not concluded that Paramount's proposal is likely to surpass the Netflix deal, they are open to discussions that could lead to a superior, binding proposal that benefits Warner Bros. Discovery shareholders. In a strategic move, Netflix has recently revised its $72 billion acquisition offer for Warner Bros., opting for an all-cash transaction to counteract Paramount's aggressive takeover attempt. Under this agreement, Netflix would pay $27.75 per share, encompassing assets such as HBO Max and WB Studios. Should the Netflix deal succeed, Warner Bros. plans to separate its cable television division into a new entity named Discovery Global.