Warner Bros. Discovery on Feb. 17, 2026 said it would reopen merger talks with Paramount Skydance, giving Paramount until Feb. 23 to present a best-and-final offer. The decision revives a months-long contest with Netflix after WBD in December favored Netflix’s $83 billion acquisition of its streaming and studio assets over Paramount’s earlier $108 billion takeover proposal for the whole company. Paramount has publicly held its per-share figure at $30 but, according to a verbal notice to a company board member, signaled a $31-per-share offer if talks resume. Shares of both companies rose roughly 3 percent in premarket trading following the announcement.
Key Takeaways
- Warner Bros. Discovery announced on Feb. 17, 2026 that it will restart negotiations with Paramount Skydance and set a deadline of Feb. 23 for a final offer.
- Netflix’s December proposal targeted only WBD’s streaming and studios business at $83 billion, a deal the WBD board previously preferred to Paramount’s $108 billion whole-company bid.
- Paramount has not publicly increased its $30-per-share offer; a representative reportedly told a WBD board member it would agree to $31 per share if talks are authorized.
- Paramount amended its takeover proposal twice in the two months after WBD rejected its initial bid, addressing some board concerns.
- Paramount’s CEO David Ellison has questioned whether the Netflix transaction can clear regulatory review, highlighting a key uncertainty for shareholders.
- Investors including Pentwater Capital Management urged WBD to reopen discussions; market reaction lifted both firms’ shares ~3% premarket.
Background
The bidding contest dates to late 2025 and early 2026, when Paramount mounted a hostile bid to buy Warner Bros. Discovery outright for an estimated $108 billion. Warner Bros. Discovery’s board rejected that offer in December, instead favoring Netflix’s $83 billion proposal to acquire WBD’s streaming and studio operations—an agreement the board judged superior for shareholders. Paramount disputed the board’s conclusion and pursued its strategy publicly, amending its proposal twice in the following weeks to try to meet board concerns.
Paramount’s leadership, led by CEO David Ellison, raised regulatory questions about whether Netflix’s asset-sale structure would survive antitrust review, a point that fed shareholder debate. Meanwhile, activist and institutional investors—including Pentwater Capital Management—expressed unease with the board’s decision and urged renewed negotiations with Paramount. Those pressures, combined with Paramount’s continued outreach, set the stage for the board’s decision to reopen talks.
Main Event
On Feb. 17, Warner Bros. Discovery told investors and counterparties it would restart talks with Paramount Skydance that had been halted in December. The board gave Paramount a narrow window—until Feb. 23—to submit a best-and-final proposal, a procedural move that preserves the company’s ability to pursue the Netflix agreement if talks do not yield a superior offer. Company filings and market disclosures framed the reopening as an effort to ensure the board evaluates any materially better alternative for shareholders.
Paramount has publicly maintained the $30-per-share level for its bid, though a senior Paramount representative reportedly told a WBD board member that the company would agree to $31 per share if the board authorized talks. That representative also indicated a willingness to further improve the offer, according to the same account; WBD has not confirmed any binding increase. The board’s decision does not automatically replace the Netflix arrangement, which remains a standing agreement unless superseded by a superior, fully negotiated proposal.
The procedural restart prompted an immediate market reaction: shares of Warner Bros. Discovery and Paramount Skydance rose about 3 percent in premarket trading. Investor statements suggest the move aimed both to calm activist shareholders and to compel Paramount to crystallize any improved terms. Executives and advisers on all sides will now weigh valuation, structure, and regulatory prospects as the deadline approaches.
Analysis & Implications
The reopened talks underscore three competing priorities: maximizing near-term shareholder value, assessing regulatory risk, and choosing between an asset sale and a full-company takeover. Netflix’s $83 billion offer is narrower in scope—covering streaming and studios—but the WBD board judged it more attractive to shareholders in December. Paramount’s counterproposal has sought to outbid or otherwise counterbalance that view by offering to acquire the whole company at a higher enterprise valuation under the $108 billion framework.
Regulatory scrutiny is a central uncertainty. Paramount’s leadership has publicly questioned whether Netflix’s asset-focused transaction would pass antitrust review; regulators could view the competitive effects of a concentrated streaming-studio combination differently than shareholders do. If regulators block or require substantial remedies for the Netflix deal, the relative value of a Paramount whole-company bid could rise—but that outcome is speculative and depends on multiple jurisdictional reviews.
For shareholders, the immediate question is whether Paramount will firm a materially higher price before Feb. 23. The verbal $31-per-share signal, if accurate and if backed by binding terms, would be modest relative to the gap between the $83 billion asset deal and the $108 billion whole-company valuation. Advisors will also examine deal structure, financing certainty, and termination fees that could affect net proceeds to WBD shareholders.
The broader media industry could feel ripple effects regardless of the immediate winner. A successful Paramount takeover would consolidate studio and streaming assets under a traditional studio-led buyer; a Netflix-acquired bundle would further tilt market power toward a global streamer. Either outcome would shape content bargaining, distribution strategies, and future M&A incentives across entertainment and tech companies.
Comparison & Data
| Bidder / Structure | Scope | Headline Value | Per-Share Signal |
|---|---|---|---|
| Netflix | Streaming + Studios (asset sale) | $83 billion | N/A (asset price) |
| Paramount Skydance | Whole-company takeover | $108 billion | $30 publicly; $31 (verbal reported) |
The table contrasts Netflix’s narrower, $83 billion asset deal with Paramount’s $108 billion takeover plan. The per-share figures are relevant for shareholders of publicly traded Warner Bros. Discovery stock: Paramount’s public offer stands at $30 per share, with a reported verbal indication of $31 if talks resume—numbers that advisers will translate into expected gross proceeds after accounting for deal structure and any fees.
Reactions & Quotes
Market participants and stakeholders offered measured responses emphasizing shareholder value and process. Below are representative, brief attributions from public reporting and filings.
“The board will consider any materially better proposal for the benefit of shareholders.”
Warner Bros. Discovery (company disclosure)
This statement reflects the board’s fiduciary duty as described in regulatory filings and in the company’s explanation for reopening negotiations.
“Paramount has not publicly raised its offer from $30 a share.”
Paramount Skydance (public disclosures)
Reported commentary stresses that the $30-per-share figure remains the public baseline even as private conversations signal potential increments.
“Some investors encouraged the company to restart talks with Paramount to explore all value-maximizing alternatives.”
Pentwater Capital Management and other investors (investor letters/statements)
Investor pressure was cited in filings and reporting as a factor prompting the board to authorize renewed discussions.
Unconfirmed
- The reportedly verbal commitment by a Paramount representative to $31 per share remains unconfirmed by a binding filing or public offer.
- Paramount’s claim to be willing to further improve its offer was reported verbally and has not been backed by documented, signed terms in public filings.
- Whether the Netflix asset deal would definitively pass all relevant antitrust and competition reviews is an open regulatory question, not a settled fact.
Bottom Line
The board’s decision to reopen talks resets a high-stakes negotiation over Warner Bros. Discovery’s future and gives Paramount a limited opportunity to submit a materially better, binding proposal by Feb. 23. Paramount’s reported verbal move to $31 per share, if formalized, is modest relative to the strategic differences between an $83 billion asset transaction and a $108 billion whole-company offer, but process and regulatory risk could shift comparative valuations quickly.
Investors and regulators will now be the focal points: investors seeking maximal, timely returns; regulators assessing competition and consumer impacts; and management teams weighing certainty versus potential upside. In the short term, the market will watch any formal filings and the Feb. 23 deadline; in the medium term, outcomes will influence consolidation patterns across media, streaming, and content production.
Sources
- The New York Times — news report (The New York Times)