Netflix grants a 7-day waiver to WBD to reopen deal talks with Paramount Skydance

Warner Bros. Discovery She said on Tuesday that she would reopen agreement talks with… Paramount Skydance Subject to a 7-day waiver from Netflix To explore the “shortcomings” of Paramount’s bid to purchase WBD outright.

The legacy media company has a pending deal with Netflix regarding its streaming and studio businesses. Paramount launched a hostile bid directly to WBD shareholders at $30 per share after losing to Netflix in a bidding war.

“Netflix has granted WBD a limited waiver under the terms of WBD’s merger agreement with Netflix, allowing WBD to engage in discussions with Paramount Skydance (“PSKY”) (NASDAQ: PSKY) for a period of seven days ending February 23, 2026 to obtain clarification to WBD stockholders and to provide PSKY with the ability to make its best and final offer,” Warner Bros. said. Discovery in a statement.

“During this period, WBD will reach out to PSKY to discuss deficiencies that remain unresolved and clarify certain terms in PSKY’s proposed merger agreement,” it said.

Paramount’s leadership has repeatedly said its cash offer of $30 per share is not the “best and last.” Last week, the company improved its offering with additional “improvements,” but stopped short of raising the stock’s value.

Warner Bros. said: Discovery said Tuesday that a senior Paramount representative told a WBD board member that it would pay $31 per share if deal talks were reopened.

After the limited waiver period, Netflix will retain the matching rights set forth in the merger agreement, WBD said.

“Throughout the entire process, our sole focus has been on maximizing value and certainty for WBD shareholders,” WBD CEO David Zaslav said in a statement. “Every step of the way, we have provided PSKY with clear guidance on the deficiencies in its proposals and opportunities to address them. We are engaging with PSKY now to determine whether they can deliver a binding, enforceable proposal that provides superior value and certainty to WBD shareholders with their best and final offer.”

WBD also announced Tuesday a special shareholder meeting on March 20, and said its board continues to unanimously recommend a Netflix deal over the Paramount bid.

Netflix said in a statement that the shareholder meeting date marks “an important milestone for our deal with WBD.”

“While we are confident that our deal provides superior value and certainty, we recognize the continued distraction of shareholders at WBD and the broader entertainment industry due to PSKY’s antics,” Netflix said. “Accordingly, we have granted WBD a limited seven-day waiver of certain obligations under our merger agreement to allow them to engage with PSKY to fully and finally resolve this matter.”

Paramount and Warner Bros. shares rose. Discovery rose nearly 3% in premarket trading Tuesday.